News of Ralph Bernard's resignation as chief executive of GCap Media had radio people queueing up to pay tribute to his quarter- century of service to the industry and saw the company's share price immediately lose 9% of its value.
"Bernard has a passion for radio," reflects Alex de Groote, media analyst at Panmure Gordon. "I don't think there is an equivalent in other media."
Phil Riley, the former boss of Chrysalis Radio and a name linked as a possible successor to Bernard, adds: "He's a great guy and a close friend and I've never had anything but good dealings with him, whether it's negotiating deals, or getting on with him as a fellow chief exec. He will be sorely missed."
Bernard's announcement comes two and a half years after GCap was formed by the merger of GWR, of which he was chief executive, and Capital Radio. Following a tumultuous post-merger period, GCap is entering a relatively stable phase with a new management structure in place, including Richard Eyre as chairman and Fru Hazlitt (another tipped to succeed him) as managing director of GCap London.
So why go now?
Right time
Bernard merely says that the "time is right". Others are more candid. Jonathan Barrowman, Initiative's head of radio, says: "He's probably got to a point where he preferred to hand over the reins. It wasn't the best case study on how to merge two businesses."
The fall in the company's share price that greeted the news of his departure was at odds with what has generally been a troubled relationship between Bernard and the City.
De Groote outlines why: "Since the merger, GCap has generally seen poor profit performance. It's mainly down to the ad recession, a loss of commercial market share to other media and company-specific merger issues.
"As a financial analyst, I view things through the share price and its share price is on its knees."
While Bernard blames the City for not understanding GCap and radio, the fact is, when the merger took place, the combined market capitalisation of GWR and Capital Radio was about £710m. It is now about £250m.
One of the areas where the City and Bernard do not see eye to eye is digital radio.
De Groote says: "The problem is that the expectations of digital in 2000 were very high." But since then, he says, digital radio has failed to prove its commercial viability. "There could be potential, but not in the short term."
As a digital radio pioneer, Bernard is understandably frustrated at the City's short-termism, but equally so at the failure by the Government to assist the take-up of DAB, which he hopes will be addressed next year.
Bernard says: "The biggest factor will be whether the Government moves towards announcing a date for analogue switch-off. Then the prospects of digital radio will improve. If no date is announced it won't happen for 15 years."
Another frustration for Bernard has been the criticism of an advertising initiative on the flagship Capital Radio station that he sponsored and supported. The "two-ads-in-a-row" policy reduced the length of ad breaks and was designed to halt the drift of listeners to the ad-free BBC stations.
"It's flawed," says Barrowman. "Originally, it was a knee-jerk reaction to appease the City. It hasn't arrested the decline in audience. It isn't about the 10 minutes of commercial messages, it's about the 50 minutes of content."
MindShare's investment director of radio, Howard Bareham, agrees: "People don't tune in for the ads and they don't tune out for the ads."
Thorough review
The general feeling is that the policy should go the way of Chris Tarrant - out the back door.
Regardless of who succeeds Bernard, analysts and media buyers agree that there is a big job ahead. De Groote cites some figures that highlight GCap's decline. "In the 1999/2000 fiscal year Capital alone achieved an operating profit of £44m," he says.
"This year, we reckon, GCap could roughly achieve a £14m to £15m operating profit."
One radio executive sums up what's needed. "A thorough review of the group," he says. "Look at the digital business and decide whether to push ahead. Look at the group structure. It has got to look at each of the stations and ask, 'is this a coherent structure?'. And it has got to look at the ad minuteage issue."
Bernard's legacy includes a radio group in need of radical reform, but it also includes, in Classic FM, a commercially and critically acclaimed station, which he will continue to chair.
And as the chairman of the Digital One multiplex, the industry won't have heard the last of him.
BERNARD FACT FILE
2006: Became chief executive of GCap
2005: Became executive chairman of GCap Media (formed by the merger of GWR and Capital)
1991: Launched Classic FM and five years later led GWR's bid to take full control of the station
1985: Promoted to managing director, then chief executive of Wiltshire Radio and oversaw the merger with Radio West, which relaunched in Bristol as GWR
1982: Moved to Wiltshire Radio as programme controller
1980: Became news editor and programme controller at Peterborough's Hereward Radio
1975: Radio journalist for Radio Hallam in Sheffield
1971: Reporter for several local and evening papers.