Pearson CEO Stuck in ‘Last Chance Saloon’ Faces Investor Wrath
- Fallon to visit investors who now question his credibility
- Shares drop most on record on U.S. education business slump
John Fallon.
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Pearson Plc Chief Executive Officer John Fallon faces the daunting task of securing support from skeptical shareholders after the company lost more than a quarter of its value in its worst-ever day of trading.
Fallon is planning to visit investors after acknowledging major challenges in the company’s biggest business, U.S. higher education. On Wednesday, Pearson announced plans to lower the dividend and said it would sell its stake in book publisher Penguin Random House to raise cash. After Fallon insisted just three months ago that markets were improving, the shock of Wednesday’s revision has further put the credibility in doubt of a CEO who has repeatedly missed targets since taking the helm four years ago.