Shares in Fairfax Media hardly budged yesterday after the company revealed that it had made significant changes to the senior management of its Financial Review business group that houses the AFR newspapers and BRW and other magazines.
The changes were announced in a statement to the ASX yesterday morning.
In reaction the shares eased half a cent to $1.24 and then grabbed back that half a cent and another to end at $1.25.
Fairfax Media said CEO of the Financial Review Group, Michael Gill, had resigned, to be replaced by Brett Clegg, a former deputy managing editor of the paper and Macquarie banker who only weeks ago took a commercial role at News Ltd as deputy chief executive of The Australian newspaper.
In thanking Michael Gill for his contribution to Fairfax over 21 years, Fairfax CEO Greg Hywood said, "Michael has led the AFR and the entire FRG business through some of the most significant and challenging years in the history of modern media.
"His commitment to the AFR, BRW, the business and the other publications under his control is to be admired and respected. Michael’s career as a journalist and publisher at Fairfax has been outstanding."
The AFR editor Glenn Burge has also gone, leaving for an unspecified role elsewhere within the company, Fairfax chief executive Greg Hywood said in the statement that was also sent to staff.
Mr Hywood said, "Australian Financial Review Editor, Glenn Burge, will also be taking another role in Fairfax Media.
"I have asked Glenn to give consideration to working with me in an important role within the company. Glenn has been an excellent editor of the Australian Financial Review and Editorial Director of FRG, and we look forward to harnessing his considerable skills, network in the business community and experience elsewhere in the company."
Mr Hywood said Mr Clegg had significant editorial and commercial experience. "Brett is well known for his commitment to quality independent journalism, his very significant commercial nous and a deep understanding of the digital future," he said in a note to staff. He had a "long-held dream" to lead the group, but his start date is unclear given his recently signed contract with News. Roger Johnstone will act as chief executive until Mr Clegg starts work.
The AFR has lost significant sales in recent years.
Its weekday circulation fell from 77,470 in the December quarter in 2009 to 74,733 in 2010, and its weekend edition fell from 84,528 to 78,783 in the same period.
Since late 2007 the paper has lost more than 15% of its sales.
In the December, 2007 quarter, the paper was selling an average 88,247 copies Monday to Friday and more than 96,100 on Saturdays.
Managing editor Paul Bailey will be acting editor of the AFR ahead of a permanent appointment.
