White Smoke at BAT

Source from:  Financial Times 08/21/2009

Having "bank" on your CV is no longer a barrier to future gainful employment. That is one conclusion that will be drawn if Richard Burrows, former governor (ie chairman) of Bank of Ireland, is appointed chairman of British American Tobacco. The fact the news comes after Andy Hornby, former HBOS chief executive, won a chance at rehabilitation from Alliance Boots, and coincides with pictures of Sir Fred Goodwin, back in Edinburgh from self-imposed exile in France, just proves it. Not so fast. Mr Burrows endured a tongue-lashing from Bank of Ireland investors earlier this year and volunteered his resignation. His fate was shared by many directors of Irish banks. They made a collective strategic error to expose their institutions to the property boom and deservedly took the rap. But Bank of Ireland was at the "less bad" end of the spectrum - more Lloyds TSB (pre-HBOS) than Royal Bank of Scotland, according to one analyst. Mr Burrows can also boast previous experience as a top executive in the drinks industry, which would recommend him to the cigarette manufacturer. If BAT chooses Mr Burrows, it may reflect the fact that employers are starting to distinguish, rightly, between bank bosses who did the right thing by stepping down, and bosses who indubitably did the wrong thing by driving their banks into the mire. It doesn't change the fact that blue-chip chairmen are in short supply. But not so short that a second chance for Mr Burrows means a similar second chance for every Fred, Vic and Andy. Enditem