Illness throws open Pearson succession

Peter Jovanovich, one of the most important executives at Pearson, has been forced by doctors to stand down from the media group after wrestling with a lung illness, it emerged yesterday.

Mr Jovanovich is suffering from a pulmonary disorder and has taken leave of absence to combat the problem. He runs Pearson's key education division which is the group's biggest earner, producing 63 per cent of group sales and 66 per cent of its operating profit.

The company, which also owns Penguin books and the Financial Times, said that Mr Jovanovich had been ill for some time and that he required a period of rest. A statement said: "Peter fully intends to return to work as soon as possible. We will continue to be in touch with him and make sure he is focused only on a speedy recovery."

The company said it expected Mr Jovanovich was likely to be absent for "a few months" but could not say when he was likely to return.

The education division's importance is critical because of the advertising downturn which has hit the Financial Times. Mr Jovanovich, 54, is two years younger than Dame Marjorie Scardino, the chief executive of Pearson, and has been touted as a possible successor at the helm of the group, although most experts believe the company will appoint an outsider when Dame Marjorie eventually retires.

Mr Jovanovich has been central to Pearson's strategy of selling none core assets, such as the Tussauds leisure group and stakes in Lazard, the investment bank, and concentrating on publishing.

Pearson's education division is based in Upper Saddle River, New Jersey. Its higher education operations, supplying text books and other educational materials to colleges, was Pearson's best performing business last year generating operating profits of £142m on sales of £775m. It was closely followed by the schools business which had operating profits of £140m on sales of £1.15bn.