First Data CEO Fote Plans to Step Down
A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
November 28, 2005 9:59 a.m.
In an unexpected move, First Data Corp. said its chairman and chief executive, Charles Fote, is stepping down and will be replaced by his predecessor Henry "Ric" Duques.
First Data, owner of Western Union and the STAR ATM network, said the 56-year-old Mr. Fote is "retiring from the company for personal reasons." He will step down immediately as CEO and as chairman at the end of the year. He will remain as a consultant for 18 months.
Mr. Duques, 62 years old, was Mr. Fote's predecessor and led First Data until he retired as CEO in 2002. Mr. Duques plans to serve as chairman and CEO of the ecommerce and payment-services company for about two years and help search for a replacement, First Data said.
In a teleconference Monday, Mr. Duques said, "Priority number one, priority number two and priority number three" will be to "create shareholder value for 2006 and beyond."
The management change comes a few weeks after the Greenwood Village, Colo., company said it had hired Morgan Stanley to explore strategic options for its U.S. credit card-issuing business, which have been a drain on the company's financial results.
Mr. Duques said First Data will continue to explore the possible sale of its U.S. credit card business. "It will continue as previously contemplated," Mr. Duques said. "If anything I will accelerate this process." |
