Woolwich chief makes abrupt exit

Woolwich, the UK's third largest building society, was last night facing an unprecendented crisis as its chief chief executive Peter Robinson resigned unexpectedly, less than three months after taking office.

The society, which recently anounced plans to seek a stockmarket listing worth up to pounds 3bn, refused to comment on the reasons for of Mr Robinson's departure.

Sir Brian Jenkins, chairman of the Woolwich, said: "Neither Mr Robinson not the society belive it to be appropriate to comment further at this stage. The normal business of the society is entirely unaffected. Its assets and funds remain unimpaired."

Mr Robinson's place will be taken once more by Donald Kirkham, who retired as group chief executive in January.

Sir Brian added that Mr Kirkham had the full confidence of the society's board until a new chief executive could be found. He also confirmed that its flotation plans would continue.

Mr Robinson's departure, after 32 years at the Woolwich, would be a severe setback for the society's plan to de-mutualise next year. He took over in January, replacing Mr Kirkham only a week before the society announced its proposals.

It is believed that the meeting yesterday followed a emergency meeting of Woolwich directors over the weekend. Yesterday's all-day board meeting followed mounting speculation in the City.

Some reports suggested yesterday that Mr Robinson, aged 54, has found it hard to develop a proper working relationship with Sir Brian jenkins, former Lord mayor of London and City accountant, who became chairman last year after retiring from accountancy firm Coopers and Lybrand.

Mr Robinson is widely viewed as the architect of Woolwich's decision to seek a listing on the Stock Exchange. The decision to float follows that of Halifax Building Society, which merged with Leeds Permanent last year.

It also came in the wake of a separate decision by Cheltenham & Gloucester, another top-10 building society to agree takeover terms by Lloyds Bank. Alliance & Leicester, the nearest rival in terms of size followed suit within days of the Woolwich announcement. Last month, the Woolwich reported profits of pounds 333m in 1995, up 10 per cent on the year before.

If the flotation goes ahead, more than 3.5 million members of Woolwich Building Society, Britain's third largest, look set to share in a shares windfall worth up to pounds 800 each.

Both the society's 600,000 borrowers and its 3 million-plus share account holders will each be handed shares worth up to pounds 1,000 in return for backing the flotation, due in August next year.

But Mr Robinson made headlines when he dubbed as "carpetbaggers" about 30,000 new savers who opened their accounts shortly before the announcement was made. He added that they would not share in the shares free-for-all

Woolwich's 17 directors, including Mr Robinson and Sir Brian Jenkins, who received a total pounds 1.4m in payments during 1994, are likely to benefit from generous share-option packages, similar to those awarded to newly listed corporations.