Group Chief Executive Succession

RNS Number : 2163K

Old Mutual PLC

15 April 2015

 



Old Mutual plc

Ref 297/15

15 April 2015

Old mutual Group Chief Executive succession

Old Mutual plc ("Old Mutual" or "the Group") is pleased to announce the appointment of Bruce Hemphill as Group Chief Executive, succeeding Julian Roberts as part of an orderly succession plan.  Julian Roberts will remain as Group Chief Executive until Bruce Hemphill's start date, which is anticipated to be during the fourth quarter of 2015. Bruce will be an Executive Director and based in London.

Bruce Hemphill, aged 51, is currently Chief Executive of Wealth, Insurance and Non-Bank Financial Services at Standard Bank Group, the largest African banking group by assets and earnings. From June 2006 to February 2014, he was Chief Executive of Liberty Group, an African financial services group listed on the JSE. He led Liberty on an extensive transformation and growth path while delivering significant value to shareholders, and growing bancassurance with Standard Bank in South Africa and its sub-Saharan African footprint. Before joining Liberty, he held a number of roles in asset management and banking.

Patrick O'Sullivan, Group Chairman, said: "I am delighted that we are able to appoint such a uniquely qualified individual to succeed Julian and build upon his record of success. Bruce will bring experience as a chief executive of a public company combined with an in-depth knowledge of investments, savings, insurance and banking. He also has a deep understanding of the South African and wider African financial services environment.

"With this appointment, Old Mutual is well placed to continue its growth and further develop its strategy.

"I would like to pay tribute to Julian for all that he has achieved at Old Mutual, particularly as Group Chief Executive from September 2008. Under his expert leadership, the Group recovered from the challenges of the financial crisis and today is a resilient business, which has delivered a substantial increase in shareholder value and dividends with a significantly lower level of debt. It is now well positioned for the future and fully focused on helping our customers meet their financial goals."

Julian Roberts said: "It has been a great privilege to be Chief Executive of Old Mutual for the past seven years. During that time, a great deal has been achieved at the Group and I am very pleased that I will be leaving the company in such capable hands both in terms of the new CEO and the people who will support him."

Bruce Hemphill said: "I am excited to be appointed as Chief Executive of Old Mutual. Old Mutual is a very strong international business with excellent potential. I am looking forward to leading the executive team and the Group in the next stage of its development."

Enquiries

External communications

Patrick Bowes                            UK        [phone]

Investor relations

Dominic Lagan                           UK        [phone]

Sizwe Ndlovu                             SA        [phone]

Media

William Baldwin-Charles                         [phone]

                                                                [phone]

Notes to Editors

1.     About Old Mutual

Old Mutual provides investment, savings, insurance and banking services to more than 17 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

In the year ended 31 December 2014, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £319 billion of funds under management from core operations.

For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com 

2.     About Bruce Hemphill

Bruce Hemphill, BA, CPE has been the Chief Executive of Wealth, Insurance and Non-Bank Financial Services at Standard Bank Group since February 2014 having joined their Group Executive in 2013. Bruce was appointed Chief Executive of Liberty in June 2006, having previously served as CEO of STANLIB. He also served as Deputy MD of Commercial Banking at Standard Bank, and Joint CEO of Investment Banking at Standard Bank. 

Bruce is a Director of STANLIB Asset Management Limited and of Liberty Holdings Ltd.

He worked as an articled clerk at Farrer & Co in London, after he qualified from the College of Law, and then moved to Hong Kong to work as a solicitor. He has a BA from Cape Town University.

3.     Remuneration disclosure

Julian Roberts' remuneration

As announced today, Julian Roberts will stand down from the Board and as Group Chief Executive of Old Mutual in the fourth quarter of 2015. To allow for a structured transition of responsibilities to his successor Julian will remain in post until his successor joins. Julian will remain available to the Group until the end of his contractual notice period.

The Old Mutual plc Remuneration Committee ("the Committee") has determined that the following arrangements are fair and reasonable and consistent with the terms published in the Directors' Remuneration Policy and his Executive Service Agreement. The arrangements are designed to facilitate a smooth transition of responsibilities to Julian's successor.

 In accordance with the terms of Julian's service agreement the following will apply:

·      A 12 month notice commencing on 15 April 2015;

·      Continuation of salary and contractual benefits through to the end of the notice period;

·      Eligibility for a bonus in respect of the 2015 performance period, calculated and delivered in 2016 in accordance with the Directors' Remuneration Policy; and

·      Eligibility for a bonus in respect of the 2016 performance period, pro-rata to the end of the notice period, calculated in accordance with the Directors' Remuneration Policy and delivered in cash in 2017.

Details of the awards will be disclosed in the Directors' Remuneration Report of the relevant Annual Report and Accounts.

In recognition of Julian's track record of performance over more than fourteen years of service, the Committee has applied its discretion to grant good leaver status to all of Julian's unvested share awards.

All awards that are unvested at the end of the notice period will continue to vest over the outstanding vesting periods, subject, in respect of long-term incentive awards, to pro-rating and the performance conditions being met. Julian has agreed to certain non-compete provisions as a condition of the good leaver arrangements. There is no compensation for loss of office.

Bruce Hemphill's remuneration

The terms of Bruce's appointment with Old Mutual plc are set out below.

On appointment, Bruce will receive an annual base salary of £900,000. He will receive a benefits allowance of 35% of base salary (inclusive of pension) and other benefits in accordance with the Director's Remuneration Policy, such as private medical insurance, life assurance and income protection.  Relocation assistance in line with our Group Mobility Policy will be provided for him and his family. 

Bruce is eligible to participate in the Company's discretionary annual incentive plan with a maximum bonus opportunity of 150% of base salary and the Company's long term incentive plan with a maximum award value of 250% of base salary. Participation in these plans is determined annually.

On appointment Bruce will receive cash and share awards to compensate him for losses when he leaves his current employer. He will also be eligible to receive a bonus in respect of 2015 performance, part of which will act as compensation for loss of 2015 bonus at his current employer. This will be delivered in a combination of cash and shares in 2016.

Details of all awards will be disclosed in the Directors' Remuneration Report of the relevant Annual Report and Accounts.

Bruce's service agreement is in line with those of our other recently appointed executive directors.  This includes a 12-month notice period, which, in the event of termination, would be paid in monthly instalments with a duty to mitigate.

 

END

 

 

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