PCCW asks headhunters to find replacement for founder
By Dan Roberts in London
Published: May 16 2001 20:54GMT | Last Updated: May 16 2001 23:56GMT
Pacific Century CyberWorks, the struggling internet group that bought Hong Kong Telecom, has appointed headhunters to find a chief executive to replace 34-year-old founder Richard Li.
Mr Li, a symbol of Asia's internet boom and younger son of Hong Kong tycoon Li Ka Shing, is expected to take a less operational role in future following a series of recent setbacks.
As executive chairman of PCCW, he has presided over a 90 per cent fall in its share price since bidding for control of Hong Kong Telecom with highly rated internet shares in February 2000.
People close to the board said a search was under way for an experienced US telecommunications executive to take day-to-day responsibility for running the company, leaving Mr Li to concentrate on strategy.
Mr Li insisted on Wednesday that he had no immediate plans to change his role but said that he might step back in six months if a suitable replacement could be found.
"There are a couple of agencies looking for new people to join the board; we are always on the search for talent," he said.
"I have no intention at the moment of standing down, but, as a shareholder, if I feel someone else would be better at putting it [PCCW] in the right shape for the long term, I would not hesitate. I cannot see that this will come this year."
Last month, several disgruntled investors threatened to sue Mr Li after allegations that he exaggerated his educational credentials.
Mr Li admitted he had not completed a computer engineering degree at Stanford University despite claims by several of his companies that he had.
Mr Li, one of the best known business figures in Hong Kong, subsequently avoided a crowded press conference called to promote the company's exchangeable bond - leaving embarrassed directors to field questions about his time at Stanford.
More troubling has been the financial state of his company, which is suffering from severe price pressure and has struggled to raise money to pay off debts built up through the acquisition of Hong Kong Telecom from Cable and Wireless of the UK.
If Mr Li does agree to take a back-seat role and hand over management control to a more experienced executive, he would be the latest in a line of young internet entrepreneurs to have done so.
Yahoo! and eBay in the US and Bookham, Framfrab, Orchestream and QXL in Europe have seen similar management successions.
However, the man once dubbed Hong Kong's most desirable bachelor may find it an embarrassing admission of failure given the high expectations placed on his career by his family background.
His father's company, Hutchison Whampoa, is one of the largest in Asia and Victor Li, his elder brother, is already tipped to take over when his father dies.
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