Reed CEO quits after 8 mths on the job

By Georgina Prodhan and Kate Holton

LONDON (Reuters) - Publisher Reed Elsevier's (REL.L) (ELSN.AS) said on Wednesday its Chief Executive Ian Smith had quit because he was the wrong man for the times.

Smith, an industry outsider who resigns after only eight months in the job, will be replaced by divisional chief Erik Engstrom.

A company spokesman said: "Ian and the board decided it wasn't the right role for him in the current economic circumstances. Erik has proven sectoral experience. There is no disagreement on strategy."

Reed said Smith's resignation would take immediate effect and was by mutual agreement. Engstrom has been CEO of the company's scientific-publishing division Elsevier for the last five years.

Reed also warned that 2010 operating margins would likely be modestly reduced, due to a weak revenue environment combined with increased investment, particularly in U.S. legal markets.

Shares in Reed Elsevier fell 3 percent in early trading, the leading decliners in a flat European media index .SXMP.

Chairman Anthony Habgood said in a statement: "Ian has had the difficult task of leading Reed Elsevier during unprecedentedly turbulent economic times. The boards and I would like to thank him for his contribution in this respect and wish him well for the future."

Smith -- who had previously held senior roles at Royal Dutch Shell (RDSa.L), General Healthcare Group and housebuilder Taylor Toodrow (TW.L) -- was not immediately reachable for comment.