Pearson overcomes investor ire to hire CEO with big pay packet

LONDON • Shareholders in educational publisher Pearson sanctioned the appointment of former Disney executive Andy Bird as CEO on Friday, accepting the need for a multimillion-pound pay packet to secure his services.

The British company had to get the backing of shareholders to offer Bird a co-investment opportunity worth up to US$9.3 million, a move it said was necessary to secure a “rare” talent whose experience fitted with Pearson’s requirements.

Of votes cast, 67 per cent backed the move and Bird will take over as chief executive on Oct. 19.

Bird will receive a salary of US$1.25 million, the chance to double that if he hits targets, the opportunity to earn more again if he beats targets, and shares that vest over three years, currently worth around US$9.3 million. He will also buy Pearson shares worth US$3.75 million.