TIDMSL.
RNS Number : 6257Q
Standard Life plc
19 June 2015
Standard Life plc
19 June 2015
David Nish to step down on 5 August 2015
Keith Skeoch to become Chief Executive
The Board of Standard Life plc announces that David Nish is
stepping down on 5 August 2015 after six years as Chief Executive
and nine years as a Director of the Company and that, following a
rigorous succession planning process and regulatory approval, Keith
Skeoch, currently Chief Executive of Standard Life Investments,
will succeed him as Chief Executive.
The execution of Standard Life's strategy has accelerated over
the last year with the acquisition of Ignis Asset Management and
the disposal of its Canadian companies. Over recent months David
and the Standard Life Board have been discussing the development of
our senior leadership and succession planning to continue the
delivery of our strategy. In light of this, the Board and David
have agreed that this is the right time to hand over to his
successor.
Sir Gerry Grimstone, Chairman said: "David has shown great
leadership over the last six years and the outstanding progress we
have made in that time has been achieved through his incredible
drive and determination. He has changed the shape of Standard Life
allowing us to successfully grow globally through world class
investment management and distribution businesses. On behalf of the
Board I would like to say thank you and pay tribute for all that he
has achieved. He leaves the business in extremely good shape with a
clear and successful strategy, strong operational performance and a
depth of leadership talent.
"I am very pleased that Keith Skeoch is to become our new Chief
Executive. He's been an integral member of Standard Life's senior
team over the last 11 years. Under Keith's leadership the asset
management part of our group has developed into a leading global
player. He has an exceptional understanding of world markets and
the opportunities they offer, and has the right talent and
experience to continue to deliver our strategy and take Standard
Life on the next stage of our journey."
David Nish, said: "One of the most important responsibilities of
a Chief Executive is recognising both the right time to pass the
baton and also to help ensure it is passed on to the right person.
Now is the right time for both the group and myself. It has been an
absolute privilege to lead Standard Life for the last six years and
to help build our business into the strong global player it is
today.
"I'd like to take this opportunity to thank every single person
who has helped to make Standard Life the company it is today. The
business is full of inspirational people who work hard every day to
do the best that they can for our customers and clients. Our people
are truly the best.
"For me it will be a time of mixed emotions as I prepare for a
new future, however I know that Standard Life is in good hands.
Keith is the right person to continue to deliver on our strategy
and I wish him every success for the future."
Keith Skeoch said: "I am delighted to have the opportunity to
lead Standard Life. Standard Life has been both transformed and
simplified in recent years. This has put the fundamentals in place
to build a world class business with investment management at its
heart, serving savers and investors through our strong and
innovative distribution channels. It's a great honour to have the
responsibility for the next phase of our growth and I'm excited by
the challenge.
"I'd like to thank everyone across the business who has worked
so hard to make this possible and David for handing the company
over in such strong shape."
Keith will continue in his role as Chief Executive of Standard
Life Investments until a transition is effected.
For further information please contact:
Institutional Equity Investors
Jakub Rosochowski* 0131 245 8028 / 07515 298 608
Neil Longair* 0131 245 6466 / 07711 357 595
Media Relations
Steve Hartley* 0131 245 1365 / 07702 934 651
Barry Cameron* 0131 245 6165 / 07712 486 463
Tulchan Communications 020 7353 4200
Corporate Communications
Graeme McEwan* 0131 245 5593 / 07734 974 026
Group Secretariat
Kenneth Gilmour* 0131 245 0751
* Calls may be monitored and/or recorded to protect both you and
us and help with our training. Call charges will vary.
Notes to Editors
Transformation since 1 January 2010
All 2014/2015 figures are on a 'continuing operations' basis and
exclude Canada. All 2009 figures include Canada.
1. Market cap and shareholders returns
-- Market cap - GBP9.3 billion (18 June 2015) vs GBP4.8 billion (31 December 2009)
-- Returned GBP3.7 billion to shareholders since 1 January 2010
-- 2014 final dividend per share of 17.03p, up 39% since 2009 (12.24p)
-- Total Shareholder Return since 1 January 2010 - 191%
2. Assets under administration up by 83%
-- Group AUA -- GBP311.9 billion (31 March 2015) vs GBP170.1 billion (31 Dec 2009)
-- SLI AUM - GBP258.4 billion (31 March 2015) vs GBP56.9 billion (31 Dec 2009)
3. Transformation to a leading global investment savings provider
-- Sale of Standard Life Bank to Barclays in January 2010 for GBP226 million
-- Sale of Standard Life Healthcare to Discovery in July 2010 for GBP138 million
-- Acquisition of Newton Private Clients in September 2013 for GBP83.5 million
-- Acquisition of Ignis Asset Management in July 2014 for GBP390 million
-- Sale of Standard Life Canada to Manulife in January 2015 for
GBP2.2 billion, of which GBP1.75 billion returned to
shareholders
4. Business highlights
-- In 2014, 69% of Standard Life Investments' third party net
inflows (excluding Ignis) from outside the UK
-- Strategic partnerships with Manulife, John Hancock, Sumitomo Mitsui, HDFC, TEDA and Phoenix
-- Strong investment performance - Standard Life Investments'
third party AUM above benchmark: 73% (1 year), 94% (3 years), 89%
(5 years)
-- Over 600,000 additional employees saving through auto enrolment
-- Number of advisers using our UK Wrap platform increased to 1,340 (2009: 583)
-- UK SIPP AUA of GBP26.2 billion with over GBP11 billion of
assets in our market-leading Drawdown proposition.
-- Standard Life signed a three year partnership with Andy Murray in 2014
-- Standard Life Investments is the worldwide sponsor of the Ryder Cup (2014 and 2016)
5. Sustainability
-- Introduced the Living Wage in 2012 and became accredited in May 2014
-- Youth unemployment champion through various initiatives,
including the Edinburgh Guarantee scheme - in 2009, 0.5% of
Standard Life's workforce was under the age of 25, now under 25s
account for over 5% of its UK workforce
-- Work with people facing barriers to employment through
programmes with Remploy, The Prince's Trust, Tomorrow's People and
the Armed Forces
-- In 2014, Standard Life became one of the 12 Social Mobility
Champions in the UK, committing to giving opportunities to everyone
regardless of age, race or disability
6. Current Shareholdings (at 18 June 2015)
David 2,399,228 shares
Nish
Keith 2,024,890 shares
Skeoch
7. Remuneration
David Nish's remuneration
David's 12 month notice period commences on 1 July 2015.
Following our 2015 half year results there will be a seven week
handover period and following this David will be on garden leave
until 31 March 2016, at which point his employment terminates.
During garden leave David will continue to receive his base
salary of GBP835,000 per annum, his allowances and all benefits in
line with the terms of his Executive Service Agreement (ESA).
During this time restrictions are in place on his ability to
take up further employment and he will be available for
consultation.
From 1 April 2016 to 30 June 2016 David will be entitled to
payment in lieu of notice paid in instalments and subject to
mitigation.
Bonus
Reflecting the period of garden leave, which prohibits David
from taking alternative employment, he will remain eligible for
consideration for payment of a group annual bonus payment for the
period of garden leave in line with our normal practice.
-- The 2015 group annual bonus will be calculated over the
period 1 January 2015 to 31 December 2015
-- The 2016 group annual bonus will be pro-rated to cover the
period from 1 January 2016 to 31 March 2016
The 2013 and 2014 deferred bonus awards will vest on termination
on 31 March 2016 in line with plan rules.
Long-term Incentive Plans (LTIPs)
The unvested LTIP grants will continue to vest and these will be
pro-rated up to the end of the period of garden leave. These will
vest in line with the plan rules on the normal vesting dates and
are subject to the company's performance measures:
-- The 2013 LTIP award will vest as normal on 25 March 2016
-- The 2014 Executive LTIP award will be pro-rated (period 1
January 2014 to 31 March 2016) and will vest on 20 May 2019 after
the two year holding period
-- The 2015 Executive LTIP award will be pro-rated (period 1
January 2015 to 31 March 2016) and will vest on 27 March 2020 after
the two year holding period
David will be required to hold 300% of the value of his base
salary in the form of Standard Life plc shares for a period of one
year from his termination date.
Keith Skeoch's remuneration
As part of Standard Life's transition to a global long-term
investment savings provider, Keith's remuneration package has been
restructured, subject to consultation with our largest
institutional investors, to align it more with the asset management
industry.
Salary
With effect from 5 August 2015, Keith will receive base salary
of GBP700,000 as Group Chief Executive. His current base salary as
CEO of Standard Life Investments is GBP500,000.
Bonus
Keith's maximum opportunity under the group annual bonus plan
will be 175% of salary, which is the current maximum level for
David and the maximum permitted under the remuneration policy. He
will no longer receive a bonus under Standard Life Investments'
personal and company bonus plans.
Long-term Incentive Plans
Keith currently has a potential LTIP of 400%. Our remuneration
policy, approved by shareholders at this year's AGM, now allows
payments of up to 500%. The Remuneration Committee is proposing an
increase in Keith's potential LTIP to 500% under the Executive LTIP
and will now consult with our major institutional shareholders.
This rebalances the package towards long-term remuneration.
The Remuneration Committee has also increased the shareholding
requirement for Keith from 300% to 500% of the value of base salary
during employment and for a period of one year following his
departure from the group.
The base salary increase and change to the group annual bonus
arrangements will come into effect on 5 August 2015 and will be
pro-rated accordingly in 2015. The change to the Executive LTIP
will come into effect in 2016 and no further grant will be made in
respect of 2015.
Full disclosure of these remuneration arrangements will be
provided in our Directors' Remuneration Report in our Annual Report
and Accounts 2015.
8. About Standard Life
Standard Life is a long-term investment savings business
dedicated to helping build a more prosperous world. This has been
important to them since they were established in Edinburgh in
1825.
Since then, they've been growing globally. Today, the Standard
Life group employs around 6,500 people internationally - through
businesses in the UK, Europe, North America, Asia and
Australia.
Around 4.5 million customers worldwide trust them with their
financial future - and they're responsible for the administration
of GBP312 billion of their assets. They support a further 20
million customers through its Chinese and Indian joint venture
businesses. The Standard Life Investments brand also offers truly
global asset management expertise with strong investment
capabilities.
Standard Life plc is listed on the London Stock Exchange with
around 1.3 million individual shareholders across over 50
countries. And they're one of the top 500 companies worldwide, by
revenue, as listed in the 2014 Fortune Global 500.
Wherever they operate in the world, they're motivated by a sense
of responsibility. It's what helps them to be a sustainable
business. They're proud to be listed as a leader for corporate
sustainability in their industry in the Dow Jones Sustainability
Indices (DJSI World and DJSI Europe).
(Figures at 31 March 2015)
9. Biographies
David Nish
David was appointed Chief Executive on 1 January 2010 after
joining Standard Life on 1 November 2006 as Group Finance
Director.
David is the Deputy Chairman of the Association of British
Insurers. He is a member of the Financial Services Advisory Board
in Scotland and a member of the Advisory Council of TheCityUK.
He sits on the Board of HDFC Life in India, one of the country's
largest private insurers. He is a Non-Executive Director of the UK
Green Investment Bank and is a member of the Chairman's Advisory
Committee of Scottish Rugby Union.
From 1999 to 2005 David was Finance Director at Scottish Power
plc, and subsequently, he was Executive Director, Infrastructure
Division, Scottish Power plc. Previously he was a partner with
Price Waterhouse.
From 2005 to 2011, David sat on the Board of Northern Foods plc
as non-executive director and chairman of the audit committee. From
2001 to 2002 he served as non-executive director of Thus plc: and
from 2002 to 2008 was a non-executive director of the Royal
Scottish National Orchestra. In 2000 and 2009 he was awarded the
Scottish Business Awards Finance Director of the Year and from 2004
to 2005 he served on the Government Employers Pension Task
Force.
David graduated from Glasgow University in 1981 with an
accounting degree (B.Acc).
He is a member of the Institute of Chartered Accountants of
Scotland.
Keith Skeoch
Keith was appointed Chief Executive of Standard Life Investments
in 2004 after joining as Chief Investment Officer in 1999. He has
been on the Board of Standard Life plc since 2006.
From 1980 to 1999, Keith was with James Capel (HSBC Securities
from 1996) where his previous roles included; 1998 Managing
Director of International Equities, 1993 Director of Economics and
Strategy, 1984 Chief Economist and in 1980 International Economist.
Keith started his career in 1979 at the Government Economic
Service.
Keith has held a number of key industry appointments and
responsibilities. He is a board member of the Financial Reporting
Council and the Investment Association.
Keith has been awarded honorary doctorates from the University
of Sussex and Teesside University. These awards are in recognition
of his contribution to the financial services industry over many
years, most notably in the wake of the global financial crisis
where he worked with government and trade bodies in establishing
best practice in stewardship and governance.
Keith is a Fellow of the Society of Business Economists, which
was given for service to the Economics profession. In November
2013, he was named European Personality of the Year by Funds
Europe.
This information is provided by RNS
The company news service from the London Stock Exchange
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