* Terry McGraw to relinquish CEO post on Nov. 1
* Stepping down after reaching mandatory retirement age of
* To remain chairman
July 11 McGraw Hill Financial Inc said
Douglas Peterson will replace Chief Executive Harold (Terry)
McGraw, who will step down after reaching the mandatory
retirement age of 65.
McGraw, the great-grandson of the founder of the
125-year-old company, will continue as chairman after
relinquishing the CEO post on Nov. 1.
Peterson is currently president of the company's Standard &
Poor's ratings business, which is being sued by the U.S.
government for $5 billion for allegedly defrauding investors by
inflating credit ratings prior to the global financial crisis.
McGraw, who has been CEO for 15 years, was responsible for
the breakup of the company that included the sale of its TV
stations in 2011 and its textbook business this year. The
company's name was changed from McGraw Hill Cos in May.
In addition to its ratings agency, McGraw Hill owns
commodities and energy research firm Platts, market research
firm J.D. Power, the S&P Dow Jones index business and several
trade magazines including Aviation Week.
McGraw's last years as CEO were dominated by enormous
disruptions to its businesses, including a sharp reduction in
the number of bonds to rate in the wake of the financial crisis.
Peterson joined as S&P's president in 2011, replacing Deven
Sharma who stepped down after the agency's downgrade of U.S.
government debt sparked a row with the Treasury.
Peterson had earlier served as the chief operating officer
of Citigroup Inc Citibank unit.
McGraw Hill said Peterson would have a base salary of
$900,000 and an annual target bonus of $800,000, while Terry
McGraw will be paid a retainer of $400,000 a year.
McGraw Hill shares rose 2 percent to $57.01 in early trading
on the New York Stock Exchange. Up to Wednesday's close, the
shares had risen about 3.3 percent since the company reported
stronger-than-expected results at the end of April.