ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, May 16, 1996 TAG: 9605160159
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
DATELINE: LONDON
SOURCE: ASSOCIATED PRESS
Less than a year after becoming chief executive of H&R Block Inc., Richard H. Brown said Wednesday he would resign to become head of the giant British telecommunications company Cable & Wireless Group.
Brown, a former communications executive, oversaw the spinoff of Block's CompuServe Inc. subsidiary. Analysts suggested his decision might be related to the spinoff.
When the CompuServe spinoff was announced in February, Block said one reason was to concentrate on the tax business. After a poor 1994, mostly because of IRS rules changes, that business was expected to do well this year.
McDougall characterized Brown as a capable and competent executive whose ``ability to make bold decisions made him highly attractive.''
``The company knew that offers would come to Dick and they did,'' she said.
McDougall said she knew of no unhappiness on the part of the H&R Block board with Brown's performance, and that he had put together a strong management team that would carry the company forward.
Brown, who also served as Block's president, said in a statement that the offer from Cable & Wireless ``was an incredible opportunity that I simply could not pass up.''
CompuServe was a consistent moneymaker for Block and helped the company balance the seasonal volatility of the tax business. But Brown insisted that Block had plenty of room to grow its tax business and had ideas to smooth out the volatility, even without CompuServe's income.
Although final results are not available, H&R Block earlier this month reported record volume of $1.2 billion from tax services for the ending fiscal year.
Brown succeeded Thomas M. Bloch, the son of founder Henry Bloch. Thomas Bloch stepped down to concentrate on interests outside the business world.
Henry Bloch, the chairman of the board, said he was disappointed by Brown's decision. But Brown left both the tax company and CompuServe ``well positioned for future growth,'' Bloch said.
Brown's appointment by Cable & Wireless follows last fall's boardroom shakeup at the British company in which chairman Lord Young and CEO James Ross were forced to resign after fighting for control.
AP-DS-05-15-96 1842E
LENGTH: Medium: 55 linesby CNB