Phillips to Resign as Boston Co. Chairman

Boston Co., which revealed last year that it had overstated profits, has announced that George W. Phillips will resign as chairman, replaced by one of the company’s executives.

The action came in the aftermath of a top-level shake-up at Boston Co.’s parent firm, Shearson Lehman Hutton Inc., which has named a new chairman and chief executive.

Boston Co. said John R. Laird has been proposed as new chairman and chief executive, effective April 20.

Laird, 47, joined the company last September after working as an executive at American Express, which acquired controlling interest in Shearson in 1981.

“John was very successful while at American Express and at all times was supportive of American Express’ traditional values,” Howard L. Clark Jr., Shearson Lehman’s chief executive, said in a statement. Clark also was an executive at American Express.

Boston Co., the parent of Boston Safe Deposit & Trust Co., reported in January, 1989, that it had overstated profits for the first three quarters of 1988 by $30 million. At the time, Shearson officials said the overstatement involved no misuse of company or client funds.

Nonetheless, Boston Co.’s parent firm apparently saw no need to make changes until Shearson’s new leadership stepped in, said Perrin Long, who follows the financial industry for Lipper Analytical Services in New York.

“The former (Shearson) management might have been dragging their feet,” he said.

In the company statement, Phillips, 52, said he looked back at his 28 years with the Boston Co. “with considerable pride.”

“However, I look forward to new challenges and take great comfort in the strong management team which I leave behind at the company,” he said.

William J. Nutt will continue as president of the Boston Co. and chairman and chief executive of Boston Safe Deposit & Trust.