19th Jun 2015 07:00
LONDON (Alliance News) - Standard Life PLC Friday said that David Nish is standing down as chief executive after six years in the role, with Keith Skeoch, the head of its increasingly influential investments arm, to become the leader of the FTSE 100 group.
In a statement, the Edinburgh-based investments and savings company said that Nish and the remaining board directors discussed succession planning for months, particularly in the wake of the sale of its Canadian business and the acquisition of Ignis Asset Management.
Standard Life said that Nish will stand down as chief executive from August 5, with a seven-week handover to come before he goes on "garden leave" until the end of March 2016.
"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," Chairman Gerry Grimstone said in a statement.
"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," Grimstone said.
Nish, who will continue to receive his basic salary of GBP835,000 per annum, his allowances and benefits during his garden leave, said that standing down will give him "mixed emotions" but that Skeoch is the right person to take on the job.
"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," Nish said.
Skeoch said that Standard Life has been "transformed and simplified" in recent years, emphasising the importance of the investments arm. Skeoch's basic salary will increase by GBP200,000 per annum to GBP700,000 when he becomes CEO. His bonus can be as big as 175% of that salary, with the group proposing to pay him up to 500% his basic salary under a long-term incentive plan shares.
"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," Skeoch said.
By Samuel Agini; [email protected]; @samuelagini
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