Bewkes replaces Parsons as Time Warner chairman

12 December 2008

New York: In a widely expected move Time Warner Inc. chief executive Jeffrey Bewkes will replace Richard Parsons as chairman of the board. Parsons steps down from that position on 31 December.

Bewkes took over from Parsons as chief executive in January and the succession is in line with the plan outlined by Parsons earlier this year.

It is not clear what Parson's next move is likely to be. An economic adviser to US president-elect Barack Obama, Parsons is also on the board of Citigroup Inc. and a Wall Street Journal report last month said there was speculation that he may be a leading candidate to replace chairman Win Bischoff as some directors grow frustrated with the bank's performance.

Also, Obama has already informed a number of his supporters, including Parsons, that he may ask some of them to work in Washington if he was elected.

As for Bewkes, the move is in line with terms of his contract, which specified that he could retire if he didn't become chairman after one year. His terms include as much as $19 million in base salary and bonuses. The board had till 1 January 2009 to determine whether Bewkes, 56, would replace Parsons.

Before becoming chief executive, Bewkes had served as Time Warner's president and operating chief since 2006. His current five-year contract ends 31 December 2012.