Reed begins search for new chief

Reed Elsevier has appointed a headhunter to begin the search for a replacement to Sir Crispin Davis, its veteran chief executive who has overhauled the publishing company during his near decade-long tenure.

Due to retire next year, when he turns 60, Sir Crispin has reinvented the company as a purveyor of online information for the professions and helped transform its corporate structure.

Most recently, Reed has put its lower-growth magazine arm up for sale and entered a deal to buy ChoicePoint, a provider of insurance data, for £1.76bn, part of further radical restructuring plans unveiled earlier this year.

Anna Mann, the headhunter, is examining both internal and external candidates for Sir Crispin’s successor, although no definitive date has yet been set for his departure.

Possible internal contenders for the job include Andrew Prozes, who heads the Lexis Nexis information business; Mark Armour, finance director; and Erik Engstrom, who manages its science and medical division.

Knighted in 2004, Sir Crispin – who joined from Aegis and now also sits on the board of GlaxoSmithKline – may consider directorships of other FTSE 100 companies, although he is said to be open-minded about his plans.

Under his leadership, the Anglo-Dutch publisher has sought to reduce exposure to print with its accompanying cyclical advertising revenues and focus more online.

Reed has also introduced stringent cost-cutting. Last year, the company enjoyed what Sir Crispin called the highest rate of earnings per share increase for 10 years.

Still, rivals and analysts have since questioned the timing of the attempted divestment of its business-to-business print arm, given the weak advertising market.

UBS, Reed’s adviser, sent an information memorandum regarding the sale – which analysts estimate could fetch £1.1bn – to interested parties last week.

Reed yesterday said it was “determined to ensure a smooth and professional succession plan”. Jan Hommen, chairman, heads the nomination committee, whose other members include David Reid, chairman of Tesco, and Mark Elliot, a former IBM director.