Parsons replaces Case at AOL

Reshma Kapadia

NEW YORK: AOL Time Warner Inc has announced that its board has unanimously voted to give Chief Executive Richard Parsons the additional role of Chairman, replacing Steve Case at the world's largest media company.

Case, whose resignation is effective in May, stepped down on Sunday amid criticism of his role as an architect of the AOL Time Warner merger, now widely criticized as a failure. Case will be nominated as a non-management director in the 2003 proxy, the company said in a statement.

Some investors said the appointment of Parsons, who is widely respected in the industry, closes a stormy chapter in the company's history, which has seen the stock fall 70 percent since AOL's purchase of Time Warner was completed.

However, the dual role flies in the face of a recent call by a panel set up by the Conference Board, an influential economic think tank, to split chairman and CEO roles at publicly traded companies.

"Like so many companies, AOL Time Warner is not convinced that corporate governance in 2003 is going to make their stock price go up as fast as great management and giving them the resources," said Scott Wendelin, head of Prospect Financial Advisers, which advises corporate boards on issues such as corporate governance and strategic initiatives.

The top ranks are now filled by former Time Warner veterans, including former HBO head Jeff Bewkes and former Time Inc. head Don Logan as Parsons' top deputies. All the key architects of the mega-merger and many America Online veterans have been pushed out in the last year.

Shares of AOL Time Warner closed up 6 cents at $15.30.

© Reuters