Software chairman retains CEO post

Tuesday, Apr 09, 2013 15:41

HA NOI (VNS) — Software giant FPT last week approved the appointment of chairman Truong Gia Binh as acting chief executive officer (CEO) until he is replaced before June. He will in the meantime continue to also hold the position as chairman.

The plan to "transfer to a new generation" has always been in the group founder's targets since he left the CEO chair in 2009 and appointed Truong Dinh Anh.

However, the plan failed as Anh resigned last year due to the alleged pressure of not bringing FPT's performance up to expectation.

Revenue and profits of the group in the first half of last year reached VND11.5 trillion (US$547.6 million) and VND1.2 trillion ($57.1 million), accounting for only around 40 per cent of the target.

The reason Anh stated for his resignation was the difference in strategic planning and managing methods with the board of directors.

Binh was one of FPT's founders, acting as CEO during the 1988-2009 period. After three years as chairman, he reprised the role as CEO to help the group. Last Saturday's decision, as he said, was to "assure the operation of FPT until the next generation of leaders is found".

Forming a new management team would also fulfill the aim of seperating the functions between CEO and chairman. FPT targets this year's revenue of VND26.9 trillion ($1.2 billion) and gross profit of nearly VND2.65 trillion ($126.1 million), rising 6 and 10 per cent, respectively, compared to last year. "We believe it is achievable," FPT said.

Profits in the first quarter of this year reached around VND600 billion ($28.5 million).

FPT shares were underestimated in recent years, reflected in the 1:6 price to earnings ratio. A shareholder said at the last meeting on Saturday that the group should list shares overseas to increase liquidity. FPT closed yesterday's session at VND39,700 ($1.89), jumping 3.4 per cent over last Friday. The price has decreased some 20 per cent within a year. — VNS

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