The FTSE 100 constituent Pearson PLC (GB:PSON) today announced the appointment of Omar Abbosh from Microsoft Corporation (NASDAQ:MSFT) as its new CEO after Andy Bird decided to step down from the company. The Pearson share price was trading down by 4% today following the announcement. Under Bird’s leadership, the stock demonstrated strong performance and gained around 50% in trading in 2022.
Bird will bid adieu to Pearson after spending three years with the company and transitioning it to a digital company from a traditional publisher. Despite the appreciation for his role in transforming Pearson’s fortunes, he was on the receiving end of shareholders’ displeasure in April 2023 over his compensation of $11 million.
Pearson PLC is an education and publishing company that provides learning solutions, courses, and digital content in around 200 countries.
The New CEO
Abbosh is currently serving as the president of the Industry Solutions business at Microsoft and will take charge of Pearson in early 2024. Prior to his tenure at Microsoft, Abbosh spent more than 30 years in multiple roles at Accenture.
Analysts have welcomed this change and believe Abbosh’s extensive experience in various technology leadership roles will help Pearson advance into the emerging highly digital era.
According to the company’s statement, Abbosh will earn a base salary of £1 million, while his awards and bonuses will be subject to a cap, ensuring that his compensation remains within predefined limits. Additionally, Pearson will pay £13 million to compensate Abbosh for the loss of restricted shares from his current employer Microsoft.
What is the Stock Price Forecast for Pearson?
Overall, analysts are moderately bullish on PSON stock. On TipRanks, the stock has received a Moderate Buy rating based on six Buy, two Hold, and one Sell recommendations. The Pearson share price forecast is 1,003.9p, which represents a growth of 15.4% from the current level.
