Mervyn Davies becomes the latest former Labour minister to land a top City job

 

Mervyn Davies has become the third former minister from Gordon Brown’s government to land a top City job in a matter of days, following fellow peers Peter Mandelson and Paul Myners.

Lord Davies, a former business minister, is to be chairman of Chime Communications, the sports marketing and advertising group.

He replaces Lord Bell, who quit in June as part of a management buyout of public relations subsidiary Bell Pottinger. Bell earned a basic salary of £675,000 for his executive role but Davies is likely to earn far less as a non-executive.

Davies’ appointment came as Russian telecoms giant Megafon recruited ex-City minister Lord Myners as a non-executive director and news emerged that investment bank Lazard International has promoted former Business Secretary Lord Mandelson to chairman.

The new Chime chairman is a former banker who was chairman and chief executive of Standard Chartered before entering government. He returned to the City after the 2010 general election as a partner at private-equity firm Corsair Capital and senior non-executive director at drinks giant Diageo.

He has also overseen a Government review into the lack of women on boards. Chime’s eight-strong board has only one female director.

Davies will want to soothe Chime investors, notably Sir Martin Sorrell’s WPP, which owns 21% and voted against Bell Pottinger’s sale.

Chime said trading since July has been better than the first half of the year, when problems at Bell Pottinger hit the parent company.

The PR agency suffered after a big US government contract came to an end and its boasts about the use of the “dark arts” to gain lobbying access in Whitehall were exposed in the Evening Standard’s sister newspaper The Independent.

Meanwhile, one of Myners’ key tasks at Megafon will be to reassure the City ahead of next week’s London float, which could value the business at over £8 billion. There is controversy because oligarch Alisher Usmanov, Arsenal’s second-biggest shareholder, controls more than 50% of Megafon.

RLM Finsbury, the PR agency which acts for Usmanov, had to admit last week that it deleted unfavourable information about his past from his Wikipedia entry. Myners used to chair Marks & Spencer and Guardian Media Group.

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Financial Director / FD / Senior Finance Manager

Up to 70k DOE: Guru Careers: We are seeking an experienced Financial Director ...

Recruitment Genius: Junior / Apprentice Sales Executives - OTE £50,000

£11000 - £50000 per annum: Recruitment Genius: This financial company offer ma...

SThree: Recruitment Consultant

competitive + incentives + uncapped comms: SThree: Did you know? 98% of our di...

SThree: Trainee Recruitment Consultant

competitive: SThree: Did you know? 98% of our directors started with SThree as...

Day In a Page

Turkey-Kurdish conflict: Obama's deal with Ankara is a betrayal of Syrian Kurds and may not even weaken Isis

US betrayal of old ally brings limited reward

Since the accord, the Turks have only waged war on Kurds while no US bomber has used Incirlik airbase, says Patrick Cockburn
VIPs gather for opening of second Suez Canal - but doubts linger over security

'A gift from Egypt to the rest of the world'

VIPs gather for opening of second Suez Canal - but is it really needed?
Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Jeremy Corbyn dresses abysmally. That's a great thing because it's genuine

Fashion editor, Alexander Fury, applauds a man who clearly has more important things on his mind
The male menopause and intimations of mortality

Aches, pains and an inkling of mortality

So the male menopause is real, they say, but what would the Victorians, 'old' at 30, think of that, asks DJ Taylor
Man Booker Prize 2015: Anna Smaill - How can I possibly be on the list with these writers I have idolised?

'How can I possibly be on the list with these writers I have idolised?'

Man Booker Prize nominee Anna Smaill on the rise of Kiwi lit
Bettany Hughes interview: The historian on how Socrates would have solved Greece's problems

Bettany Hughes interview

The historian on how Socrates would have solved Greece's problems
Art of the state: Pyongyang propaganda posters to be exhibited in China

Art of the state

Pyongyang propaganda posters to be exhibited in China
Mildreds and Vanilla Black have given vegetarian food a makeover in new cookbooks

Vegetarian food gets a makeover

Long-time vegetarian Holly Williams tries to recreate some of the inventive recipes in Mildreds and Vanilla Black's new cookbooks
The haunting of Shirley Jackson: Was the gothic author's life really as bleak as her fiction?

The haunting of Shirley Jackson

Was the gothic author's life really as bleak as her fiction?
Bill Granger recipes: Heading off on holiday? Try out our chef's seaside-inspired dishes...

Bill Granger's seaside-inspired recipes

These dishes are so easy to make, our chef is almost embarrassed to call them recipes
Ashes 2015: Tourists are limp, leaderless and distinctly UnAustralian

Tourists are limp, leaderless and distinctly UnAustralian

A woefully out-of-form Michael Clarke embodies his team's fragile Ashes campaign, says Michael Calvin
Blairites be warned, this could be the moment Labour turns into Syriza

Andrew Grice: Inside Westminster

Blairites be warned, this could be the moment Labour turns into Syriza
HMS Victory: The mystery of Britain's worst naval disaster is finally solved - 271 years later

The mystery of Britain's worst naval disaster is finally solved - 271 years later

Exclusive: David Keys reveals the research that finally explains why HMS Victory went down with the loss of 1,100 lives
Survivors of the Nagasaki atomic bomb attack: Japan must not abandon its post-war pacifism

'I saw people so injured you couldn't tell if they were dead or alive'

Nagasaki survivors on why Japan must not abandon its post-war pacifism
Jon Stewart: The voice of Democrats who felt Obama had failed to deliver on his 'Yes We Can' slogan, and the voter he tried hardest to keep onside

The voter Obama tried hardest to keep onside

Outgoing The Daily Show host, Jon Stewart, became the voice of Democrats who felt the President had failed to deliver on his ‘Yes We Can’ slogan. Tim Walker charts the ups and downs of their 10-year relationship on screen