abrdn launches CEO succession plan

abrdn PLC

24 May 2024

 

abrdn plc

abrdn launches CEO succession plan

abrdn plc ("abrdn" or "the Group") today announces that it is beginning the process of moving to fresh leadership, having completed the critical first stage of its transformation into a modern and digitally-focused specialist asset and wealth management company. Following the significant strategic repositioning of the company, the Board and Group CEO, Stephen Bird, have together agreed that it is the right time for Stephen to hand over the reins to the team he has assembled over the last four years to drive the business forward.

Jason Windsor, currently Group Chief Financial Officer, has today been appointed as Interim Group CEO, subject to regulatory approval, while a formal search process, which will include consideration of external candidates, is completed. Jason will focus on the execution of the Group's strategy and transformation plans, and Stephen will work alongside Jason until 30th June, which marks the four-year anniversary of his appointment, to ensure a smooth handover.

Sir Douglas Flint, Chairman of abrdn, said:

"On behalf of the Board, I want to thank Stephen for everything he has achieved at abrdn over the last four years. He joined us as the pandemic took hold and, despite the restrictions this imposed, spearheaded a fundamental reshaping of the company, leading from the front to create a company that can be competitive in a fast-evolving sector. Adapting the inherited business model to be capable of generating sustainable and profitable growth required strategic vision, intense hard work and the courage to make tough but necessary decisions. While this was underway, Stephen took time to assemble the talent needed to execute successfully on his strategic vision and he passes on to them, with confidence, the responsibility to execute the next stage of our transformation. We owe him a great debt of gratitude and wish him well in the next phase of his career.

Jason brought significant and relevant leadership experience to abrdn and since his arrival last year has made a strong start. The Board looks forward with confidence to working with him in his new role as our Interim Group CEO."

Stephen Bird, said:

"I am immensely proud of the work we have done together to simplify abrdn and position the company for sustainable growth. Together with a refreshed leadership team and an incredibly committed group of colleagues at all levels, we have refocused our global Investments business as a specialist asset manager, working to address its cost base and build mutually beneficial linkages with our wealth businesses. abrdn's position in the UK wealth market has been transformed through the acquisition of interactive investor together with investment in our Adviser business; these are essential moves as the ongoing democratisation of savings responsibilities reinforces the demand for simple and cost-effective platform solutions to support individuals as they address their long-term financial needs.

It has been a privilege to lead abrdn through an intensely challenging time in our industry and I am grateful to my colleagues for their support and commitment to serving our clients with distinction. I leave the company well positioned, having embedded greater diversification of revenues, retained a strong capital position and, most importantly, developed a refreshed leadership team which is ready and eager to take on the challenge of realising abrdn's full potential."

On 24 April 2024, abrdn announced its Q1 AUMA and Flows Trading Update, with AUMA up by 3% to £507.7bn and total net inflows £0.8bn in the quarter. Trading and net flows thus far in Q2 have shown similar trends to Q1, and abrdn will announce its first half results on 6 August 2024.

Information regarding the compensation arrangements for Stephen Bird are set out in the Appendix and follow the remuneration policy approved by shareholders at the 2023 AGM. Compensation arrangements for Jason Windsor upon moving to the Interim Group CEO role are also set out in the Appendix.

24 May 2024

Enquiries:

Media Sarah Moody	[phone]
Duncan Young	[phone]
Institutional Equity Investors Jo Blackshaw	[phone]
Group Secretariat Paul McKenna	[phone]

Notes

This announcement is made pursuant to Listing Rule 9.6.11.

This announcement contains inside information. The person responsible for making this announcement on behalf of the Group is Paul McKenna (Group Company Secretary).

As required by section 430(2B) of the Companies Act 2006, details of the remuneration payments and related exit terms made to or to be made to Mr Bird in accordance with his employment contract will be published on abrdn's website and are set out in the attached Appendix.

LEI number of abrdn plc: 0TMBS544NMO7GLCE7H90

Classification: 3.1. Additional regulated information required to be disclosed under the laws of the United Kingdom.

Appendix - Remuneration Arrangements

Stephen Bird - Remuneration Arrangements

Further to our RNS announcement on 24 May 2024, Stephen Bird stepped down as Group Chief Executive Officer and as a Director of abrdn plc on 24 May 2024.  Details of the remuneration payments and related exit terms made or to be made to Mr Bird are set out below.

These terms were the subject of careful consideration by the Remuneration Committee and are in line with the Company's Directors' Remuneration Policy ('Policy') which was approved by shareholders at the 2023 AGM:

Salary and benefits

·     12-month notice period commenced on 24 May 2024.

·     Garden leave with effect from 1 July to 31 December 2024 inclusive. During this period, Mr Bird will remain available to support the transition and will receive his salary and contractual benefits as usual.

·     At the end of this period, Mr Bird will be paid in lieu of the balance of his notice period from 1 January 2025 to 23 May 2025. Payment in lieu will include basic salary, pension entitlement and contractual benefits, and will be paid in monthly instalments (subject to mitigation) .

·     Employment will, therefore, terminate on 31 December 2024 (the 'Termination Date').

Annual Bonus

·     Eligible for a pro-rated Annual Bonus in respect of the 2024 financial year to reflect the portion of the year prior to the commencement of garden leave (1 January 2024 to 30 June 2024).

·     The Annual Bonus will be determined and paid on the normal timetable and subject to Policy requirements including deferral and the application of malus and clawback.

Share Awards

·     Treated as a good leaver under the abrdn plc Annual Bonus Deferred Share Plan ("DSP") and Long-Term Incentive Plan ("LTIP") in accordance with the plan rules, including the application of malus and clawback.

·     Unvested DSP awards will continue to vest on normal vesting dates and will not be subject to time pro-rating.

·     Unvested LTIP awards will continue to vest on normal vesting dates and will remain subject to the satisfaction of the relevant performance conditions (measured over the full performance period) and holding periods. All awards will be prorated based on the proportion of the performance period for each award completed to the Termination Date.

·     Mr Bird will be required to comply with the  post-cessation shareholding requirements for a two-year period from the date he stepped down from the Board.

Further information

·     Other than the amounts disclosed above, Mr Bird is not eligible for any remuneration payments or payments for loss of office.

In accordance with section 430(2B) of the Companies Act 2006, the information contained in this document will be made available on abrdn's website until its next Directors' Remuneration Report is made available.

Jason Windsor - Interim Arrangements

During the period that Mr Windsor is performing the Interim Group CEO role, in addition to his annual salary he will receive an annual salary supplement of £200,000, pro-rata for the duration of the interim period. There will be no change to his pension or other benefits.

 

END