Mirror chief Montgomery quits with GBP 2m payout

A BLOODY boardroom battle at Mirror Group Newspapers came to a dramatic conclusion today with the announcement that chief executive David Montgomery has resigned.

After months of backstabbing and boardroom intrigue, Mr Montgomery fell on his sword ahead of today's meeting of the Mirror board which was expected to pass a vote of no-confidence in his leadership.

His two-page resignation letter was faxed to the Mirror Group board last night although, appropriately after months of confusion, the fax was initially sent to the office of the Racing Post newspaper by mistake. His departure follows boardroom disagreements over how to handle approaches concerning a merger . John Allwood, formerly Mirror Group's finance director and currently director of its regional and Scottish divisions, has been appointed as Mr Montgomery's immediate replacement as chief executive. A statement from Mr Montgomery' said: "After consulting with my fellow executive directors, I have decided to leave Mirror Group. It is an opportune time to make this decision as the group now seems likely to have an independent future." Sir Victor Blank, Mirror Group chairman, had been expected to ask the executive directors, Mr Montgomery's most likely allies, to abstain in a vote of no- confidence at today's meeting. Mr Montgomery is thought to be entitled to a payoff worth GBP 900,000 and compensation for share options and other benefits worth a similar amount. The City responded positively with Mirror Group shares up 1p to 208p.

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