The Economist chief executive steps down

From Times Online
April 9, 2008
Amanda Andrews

Helen Alexander, the chief executive of The Economist Group, is set to step down after 23 years at the publishing company.

Ms Alexander, who will leave the company at the group’s annual general meeting on 15 July, is to become an adviser to Bain Capital, the private equity group, and is understood to be looking for further non-executive roles. She currently has non-executive positions at Centrica and Rolls Royce.

Sources close to Ms Alexander said that her plan to leave the group had nothing to do with the fact that Dame Marjorie Scardino, chief executive of Pearson, shows no sign of leaving soon. Ms Alexander has been viewed as a possible successor to Ms Scardino.

The new chief executive of The Economist Group from 16 July 2008 will be Andrew Rashbass. He has been publisher and managing director of The Economist for three years. Prior to that he was managing director of Economist.com, having joined the company as chief information officer from Associated Newspapers in 1997.

Ms Alexander joined The Economist as marketing manager in 1985, then ran international circulation before becoming managing director of the Economist Intelligence Unit. She became chief executive of the group in 1997.

She said in a statement: “The Economist Group is in better shape than ever, and has had another record year. I’m proud of what we’ve achieved, and privileged to have led such a winning team. Now is the time for a new chief executive to take over. The temptation would be to stay too long: but it’s the right time for me to move on.

Ms Alexander has been a non-executive director of Northern Foods and BT Group. One source said, while she will most likely take on more non-executive roles she would not rule out an executive position.

The circulation of The Economist is in the region of 1.3 million. When Ms Alexander joined the company, it was 264,000.

In the six months to September 30, 2007, The Economist group posted operating profits up 25 per cent to £20.8 million. Revenues were up 4 per cent to £124.6 million.

Through the Financial Times Ltd, Pearson owns 50 per cent of The Economist Group. Balance is held by a number of individuals which include members of the Rothschild family.

Media executives already advising private equity

- Greg Dyke, who left his post as director general of the BBC in January, in January 2004 joined private equity firm Apax Partners.

- Clive Hollick, the former chief executive of United Business Media, is building a media empire for private equity firm KKR.

- Tim Schoonmaker, the former head of Emap Radio, leads the media practice at DLJ Merchant Banking Partners, the private equity arm of Credit Suisse.