InterContinental Hotels Group (IHG) group CEO, Mr Andrew Cosslett, says he regrets the departure of his Asia-Pacific CEO, Mr Patrick Imbardelli, but maintains “the company took the only action it could under the circumstance” as a ground swell of sympathy appears for Mr Imbardelli among several Asian partners and peers TTG Asia spoke to.
Mr Imbardelli’s star was rising, but he fell from grace after last Thursday’s cut-to-the-chase statement by IHG on his resignation due to a misrepresentation of his academic qualifications. Just a month ago, Jones Lang LaSalle Hotels named Mr Imbardelli Hotelier of the Year, and on July 1, he was to join the IHG Board. Under Mr Imbardelli, the Asia-Pacific team had strengthened, as had the portfolio, now comprising 188 hotels with 105 under development. There were also great deals, including the joint venture with ANA Hotels Group Japan that would see all ANA hotels there reflagged with joint IHG brands.
Asked whether, given all these achievements, Mr Imbardelli could have been given options other than the door, and a different treatment to the announcement, Mr Cosslett, in a phone interview from Shanghai, said: “No, the position is clear. The company took the only action it could under the circumstance. When someone has made claims about, or misrepresented qualifications, it is a serious issue and companies can’t condone it. They must be seen to act decisively.
“If you reviewed similar cases around the world where it’s happened, it’s almost always had the same outcome.
“It’s important companies are transparent. IHG tries to be as open as it can with its investors, shareholders and media, and that means being honest and we wanted to say, though painful, what reason was. While there would be a lot of shock, the reason was known, so people won’t go hunting (for the reason). Otherwise, people will speculate. ”
Told that IHG’s announcement had not stopped the market speculating there was more to it than met the eye, Mr Cosslett said: “There isn’t. Absolutely not.”
One owner representative disagreed with the treatment. “At that level in particular, it was one thing to have someone depart, but another to let him depart without dignity or respect. I found that sad and sickening. What he did was wrong, but he did not commit a crime and he had proved himself to the company.”
Asked if he thought Mr Imbardelli’s career was over and what he would do if he were him, Mr Cosslett said: “You have to ask Patrick that. But he’s a great guy and I’m sure he will bounce back.
“I regret his departure on a company level he was a talented leader. On a personal level, he was a good colleague and someone who became a close associate. We spent a great deal of time travelling the world, and it’s sad, but there are times when you have to make a professional decision as a representative of shareholders and investors who trust you to make that decision. It is as simple as that.”
Mr Cosslett said he did not believe IHG’s credibility had been jeopardised with Asian owners. “Mr Imbardelli joined about seven years ago (from SPHC) and at the time, I believe checking CVs was not always part of the due diligence in acquisitions. And he was also not as senior then.”
In the end, it was Mr Imbardelli’s biggest contribution to IHG building an excellent team, according to Mr Cosslett that will help save the current mess.
Mr Cosslett said: “That team is now in a position to carry on, that’s his most important legacy. So while people are sad, business is going on as usual. The plans are clear, there are great leaders overseeing Asia-Pacific...On the day to day, the COO and our leaders in the field who have the most contacts with owners and partners.
“Tony (South, acting CEO) and I have been in conversation the last four to five days with them. There’s a mix reaction of shock and sadness, but also a recognition that it was the only course open to us. We’re a public listed, British plc and there are certain expectations of the company in that situation.”
More reports in TTG Asia, June 29, 2007
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