December 2, 2011

The Wall Street Journal

Thomson Reuters Replaces Its CEO

Thomson Reuters Corp., which has been losing ground in its key business of financial data, is replacing Thomas Glocer as chief executive.

Thomson Reuters named-chief operating officer James Smith to succeed Mr. Glocer, only weeks after Mr. Smith became COO.  Until late September Mr. Smith had been chief executive of the Professional division.

The shake-up, effective Jan. 1, suggests that the controlling Thomson family has lost patience with Mr. GIocer’s efforts to turn around its Markets division, which sells packages of financial data, news and analytical tools to financial professionals.

The division generates more than half of the company’s revenue.  The Professional division oversees the company’s legal, tax and accounting and health care information businesses.

In July; Thomson reorganized the Markets unit after the weak performance of a new product the company had been hoping would spur growth.  Six executives, including the divisions chief executive officer, departed in the shake-up, which was pushed by the Thomson family.

That left Mr. Glocer with direct supervision of the unit.  At the time, Mr. Glocer said he was confident the changes would improve its performance.  Earlier this month, however, Mr. Glocer said the new product-called Eikon, which was supposed to begin paying dividends this year-likely won’t drive revenue growth until 2013.

On Thursday, Mr. Glocer sent out a memo to colleagues saying, "After 18 years at the company; more than half of which as CEO, the time has come to complete the transition to a new organization and new leadership.  Earlier today, I recommended to, our Board of Directors that Jim succeed me as CEO."

A spokesman for Thomson Reuters said neither Mr. Glocer nor Mr. Smith were available for comment.

Mr. Glocer had been CEO since Thomson merged with Reuters in 2008.  Prior to that he was CEO of Reuters since 2001.  Thomson Reuters Chairman David Thomson said Mr. Glocer would be remembered for leading Reuters to growth and guiding its sale in the merger.

Growth in the $23.7 billion global market for financial data has been slowing.  The financial data market fluctuates with employment in the finance industry.
Thomson Reuters’ share of the market has fallen to 33.2% last year from 37.4% in 2005. In contrast, Bloomberg LP has increased its share of the market to 30.3% last year from 25.1% in 2005, estimates Burton-Taylor International Consulting LLC.
by Martin Peers