BCP chairman declines to comment if new CEO will stay after March 2008

BCP chairman declines to comment if new CEO will stay after March 2008

	Published : Fri, 31 Aug 2007 22:19 By : Agencies Print this Story

LISBON (Thomson Financial) - Banco Comercial Portugues chairman Jorge Jardim Goncalves declined to comment on whether new CEO Filipe Pinhal, who replaced former CEO Paulo Teixeira Pinto today, will stay in the post after March 2008, when the current CEO mandate is due to end.

Speaking at a press conference this evening, Jardim Goncalves said that when the mandate finishes next year the appropriate bank bodies will have to evaluate the CEO's performance and decide if he will stay.

However, Jardim Goncalves said that it is a 'privilege' to have Pinhal as the new CEO.

Earlier, BCP said chief executive Paulo Teixeira Pinto has presented his resignation with immediate effect, confirming press reports earlier today.

The bank said Pinhal, first vice-chairman of the executive board and said to be close to Jardim Goncalves, will replace Teixeira Pinto.

In the last few months, Teixeira Pinto had been involved in an internal power struggle with BCP chairman and founder Jardim Goncalves.

New CEO Pinhal said that his executive board, which will keep the same members except for Teixeira Pinto, will revise the bank's 'Millennium 2010' program.

Among other targets, BCP said it would target EPS growth of over 70 pct in 2006-2010 on double digit annual revenue growth, compared to its previous target of annual EPS growth of 20 pct to 2008.

At the same press conference, Pinhal said that the 'financial and commercial targets for 2010 will be maintained, but since we are now delayed we have to introduce measures that will allow us to recover ground.'

Pinhal said that in the last few months some matters, refering to the management turmoil, demanded effort and did not allow BCP to focus exclusively in the 2010 targets.

BCP shares rose sharply today after media reports regarding Teixeira Pinto's resignation started circulating in the afternoon. The bank closed up 0.13 eur or 3.94 pct at 3.43.

Traders deemed the news positive because the CEO's resignation is seen as having the potential to bring back stability to Portugal's largest private bank. The deadlock caused by the rift between the CEO and the chairman has hurt BCP's share price and overall image recently, traders added.

luis.morais@thomson.com

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