3rd Mar 2016 07:26
LONDON (Alliance News) - Schroders PLC on Thursday confirmed that Michael Dobson will succeed Andrew Beeson as chairman, after handing over the role of chief executive to fellow board member and head of investment Peter Harrison.
Schroders acknowledged that the UK Corporate Governance Code states that, ordinarily, the chief executive should not go on to be the chairman. But the asset manager said it has consulted its major shareholders to explain the reasoning behind the decision. The changes will take effect on April 4.
"Michael has enjoyed the strong support of the shareholders as chief executive, and we believe that he will, as chairman, continue to serve their interests as effectively as he has in the past," Philip Howard, senior independent director, said.
"The board does not regard this appointment as setting a precedent at Schroders, and the separation of the roles of chairman and chief executive remains in place," Howard added.
Schroders said it does not expect to make any payment to Dobson for giving up his role as chief executive after 14 years in the position. There also will be "no contractual provision" for any compensation when Dobson's role as chairman ends, the asset manager said, adding that his annual fee will be GBP625,000.
The succession planning came as Schroders reported higher annual pretax profit in 2015 and raised its dividend.
Pretax profit rose to GBP589.0 million in 2015, from GBP517.1 million in 2014, Schroders said, lifting the dividend for the year to 87.0 pence per share from 78.0p the prior year.
"Competitive investment performance and strong distribution led to GBP13.0 billion of net new business and assets under management at the end of the year were GBP313.5 billion," Dobson said.
The FTSE 100 asset manager said it has seen continuing good institutional inflows, partially offset by intermediary outflows, to date in 2016, amid tough market conditions, rocked by the interest rate hike by China's economic slowdown, low oil prices and fears of recession in the US and Europe.
"Markets will remain volatile in the face of these uncertainties with an inevitable impact on retail investor demand in the short term," Schroders said.
By Samuel Agini; [email protected]; @samuelagini
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