REG - abrdn PLC - abrdn launches CEO succession plan

AberdeenAnnouncement

24/05/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240524:nRSX7452Pa&default-theme=true

RNS Number : 7452P  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                     +44 (0) 7721 679 892
 Duncan Young                    +44 (0) 7920 868 865
 Institutional Equity Investors

 Jo Blackshaw                    +44 (0) 7771 786 275
 Group Secretariat

 Paul McKenna                    +44 (0) 7736 853 801

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  BOASEUFWDELSELI