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Matthew Gregory RESIGNS as FirstGroup CEO

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The pressure has been mounting for several months, on FirstGroup CEO Matthew Gregory and today, he has called it quits, with his departure being after the AGM in September.

FirstGroup plc ('FirstGroup' or the 'Group') announces that Matthew Gregory has informed the Board of his intention to step down as Chief Executive and as an Executive Director at the conclusion of the Company's AGM on 13 September 2021. Accordingly, Matthew will not be seeking re-election at the AGM.

David Martin, Chairman, will become interim Executive Chairman at the conclusion of the AGM on 13 September until a permanent Chief Executive is appointed. A comprehensive search is underway to select a new Chief Executive for the Group.

Matthew will work closely with David to ensure a smooth handover process. Given his knowledge and experience of the Group, Matthew will also be available to support David over the coming months, including with certain matters associated with completing the transition to the ongoing UK-focused Group.
 
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HamworthyGoods

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The pressure has been mounting for several months, on FirstGroup CEO Matthew Gregory and today, he has called it quits, with his departure being after the AGM in September.

However good to see the annual results look much better this year
 

LNW-GW Joint

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Being described by the BBC as the end of FirstGroup restructuring/sell off to satisfy US shareholder pressure, notably of the bus network in North America.
Doesn't seem to have any UK rail implications.
 

43096

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I’m sure many shareholders will be delighted to see Gregory gone. He has been an unmitigated disaster with the frequent about faces in strategy through his time. It should also be noted that whilst with First as first CFO and later CEO, the company hasn’t paid a single penny in dividends to shareholders. If that isn’t an indication of abject failure I don’t know what is.
 

hwl

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US institutional shareholder unhappy because they bought into First for exposure to US public sector (school and city bus) contracts (after First had already publicly indicated it wanted to exit US!) and ended up with just UK rail and bus exposure and then got upset at the alleged low sale price to Swedish investment fund.
 

najaB

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It should also be noted that whilst with First as first CFO and later CEO, the company hasn’t paid a single penny in dividends to shareholders. If that isn’t an indication of abject failure I don’t know what is.
A lot of successful companies don't pay dividends. Many times it makes more sense to reinvest than to pay out dividends.
 

43096

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A lot of successful companies don't pay dividends. Many times it makes more sense to reinvest than to pay out dividends.
Though that clearly doesn’t apply in this case: they’ve paid them in the past and have talked up paying them again in the future. They haven’t done so in recent years due to poor management.
 

najaB

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Though that clearly doesn’t apply in this case: they’ve paid them in the past and have talked up paying them again in the future. They haven’t done so in recent years due to poor management.
That may very well be the case, but the original statement was that not paying dividends was "an indication of abject failure" - which it isn't. Successful companies often pay little or no dividends. My employer had net sales in excess of $1B and after expenses, taxes, etc. had $150m available to pay to shareholders but reinvested it instead.

Even where dividends are paid they can be tiny - Apple paid dividends of 22 cents per share on shares worth over $140 each.
 

43096

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That may very well be the case, but the original statement was that not paying dividends was "an indication of abject failure" - which it isn't. Successful companies often pay little or no dividends. My employer had net sales in excess of $1B and after expenses, taxes, etc. had $150m available to pay to shareholders but reinvested it instead.

Even where dividends are paid they can be tiny - Apple paid dividends of 22 cents per share on shares worth over $140 each.
You’re just arguing for the sake of it. Gregory has been a failure as First’s CFO and CEO: that’s the point.
 

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