Parsons to Ascend

Confirming earlier speculation, Richard Parsons will become chairman of AOL Time Warner when Steve Case goes away in May:

Richard D. Parsons was chosen yesterday to replace Steve Case as chairman of AOL Time Warner Inc., a move that will put the 54-year-old chief executive fully in charge of running the world’s biggest media company after Case’s resignation takes effect in May.

Parsons, unanimously elected by the corporation’s board, has served as CEO for the past year and is viewed by directors as someone who can heal rifts in the company. His rapid selection, only days after Case’s surprise resignation, to also serve as chairman is a sign of his popularity among board members.

“I am delighted by this decision and look forward to working with Dick to ensure a smooth transition,” said Case, who will remain a member of the AOL Time Warner board.

“I am highly gratified that the board shares my determination to maximize AOL Time Warner’s tremendous potential,” Parsons said. “As we address the challenges facing our company and the industries in which we operate, I will work together with the extraordinary people in this company to focus on increasing value for our customers and our shareholders.”

Parsons, who is paid several million dollars annually in cash and stock as CEO, was not promised any additional compensation for serving as chairman, AOL Time Warner officials said. [Washington Post]