15th Jun 2023 11:12
(Alliance News) - Legal & General Group PLC on Thursday named its new chief executive, but Antonio Simoes has a "hard act to follow."
The London-based financial services and asset management company said Simoes, Banco Santander SA's regional head of Europe, will join the company as CEO.
Simoes will succeed Nigel Wilson, who in January announced his intention to retire after more than a decade in the role.
Wilson will remain CEO until Simoes formally takes up his post early next year.
"The new boss at Legal & General has a hard act to follow. Since Nigel Wilson was appointed to the top job in June 2012, Legal & General shares have outperformed its life insurance peers, Aviva and Prudential, to chalk up a total return of more than 200%," said AJ Bell Investment Director Russ Mould.
"Wilson didn't necessarily make a big splash but was busy in the background, turning Legal & General into a more focused and efficient business. This could provide his successor, Antonio Simoes, with the opportunity to take Wilson's approach of focusing on long-term assets and so-called 'inclusive capitalism' to another level, but that comes with uncertainty too after more than a decade of leadership continuity."
interactive investor's Head of Investment Victoria Scholar also commented on the importance of Wilson to the firm over the past decade.
Scholar noted that he steered the company "through a number of major challenges including the double-dip recession of 2012, the Covid-19 pandemic, and the mini-budget turmoil last year."
She also said that traders are selling shares in Legal & General today on the news.
Shares in Legal & General were down 2.2% at 232.67 pence each in London on Thursday morning, making it one of the worst blue chip performers of the morning. In the past 12-months the stock has shed 6.8%.
Also on Thursday, Banco Santander said CEO of Portugal Pedro Castro e Almeida will replace Simoes as regional head for Europe in September.
The Madrid-based lender said Castro e Almeida will maintain his current position, which he has held since 2019.
Santander Executive Chair Ana Botin said: "Pedro has done a great job in leading Santander Portugal, positioning the bank as a leader in customer satisfaction, efficiency and profitability, and a model for successful transformation. He is the right person to take the region forward and build on the progress Antonio and the team have made in advancing towards One Santander."
Santander shares fell 1.2% at EUR3.21 each in Madrid on Thursday after midday.
By Sophie Rose, Alliance News reporter
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