Organisation: Capita

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Analysis and commentary by Echo Research.

Rod Aldridge dashed to distance himself from his company, amid the raging political "cash for ermine row"(The Business Online, 26/3), as a means of deflecting negative publicity and adverse speculation away from Capita. "It was simply because of this (… damaging criticism) that he resigned"(Telegraph, 26/3) asserted one unnamed Labour donor. It was an action appreciated by some: "Aldridge has done the honourable thing",asserted The Times' Robert Cole (24/3) "in resigning promptly … he stands a good chance of resurrecting his reputation".
Aldridge's actions failed to prevent a run on Capita share value, however, and a downbeat forecast from some analysts, "His departure will erode the group's competitive advantage, lowering potential growth"(Mike Murphy -Panmure, Reuters, 23/3). The value of Aldridge to Capita was also noted: "… [His] knowledge of the inner workings of government and familiarity with officials was second-to-none"(FT, 23/3). The Telegraph bluntly remarked: "Aldridge leaves Capita decapitated"(26/3).
Conjecture over 'cash for contracts' was not the only issue to dog Mr Aldridge: "Capita boss gets key role in Brown's pet project days after £1m Labour aid"(Times, 24/3). But some commentators were exasperated that "No presumption of the innocence or integrity of the lenders is entertained"(Will Hutton, Observer, 26/3).