Parsons to continue as chairman; John Martin Named CFO

It's official: Jeff Bewkes is new chief executive officer of Time Warner Inc. as of Jan. 1.

Dick Parsons, who has served as CEO since 2002 and chairman since 2003, will remain in place through 2007. Parsons will pass the baton to current COO Bewkes and continue as chairman, according Monday afternoon's announcement. The news confirms speculation, which has heightened as the Time Warner's scheduled earnings report draws near this Wednesday.

Bewkes subsequently appointed John Martin to chief financial officer of the company, replacing current CFO Wayne Pace, who will retire this year after his contract expires. Martin, who has served as CFO at Time Warner Cable since 2005, spent 12 years with Time Warner Inc. before joining its cable entity.

Praising Bewkes in a statement, Parsons called his longtime heir apparent the "right person to be the next CEO" of the media conglomerate. "I couldn’t be more delighted that he will lead this company into the future," he said. "We have had a terrific working partnership, and I am proud of what we accomplished together."

"As he leads Time Warner, Jeff will have my full support," Parsons continued. "I am confident that Jeff will deliver a new era of growth for all of our company’s important stakeholders.”

Bewkes, president and chief operating officer of Time Warner since 2006, said that he is focused on building shareholder value.

While Parsons is credited with leading Time Warner out of the dark financial times that followed the AOL merger, the company's lagging stock price in recent years has prompted some investors to call for changes in leadership and structure, including the possible spin off of AOL and Time Warner Cable.

“Dick accomplished much to restore Time Warner’s stature as the world’s leading media and entertainment company," Bewkes affirmed, "and he put into place the foundation and flexibility for our future growth.”

Time Warner stock rose nearly 3% following the Monday announcement, holding at 18.28 per share this morning (NYSE:TWX).