The man who transformed Standard Life PLC from a Scottish
insurance company to one of the U.K.'s biggest international asset
managers is standing down as its chief executive.
David Nish will hand over the reins in August to Keith Skeoch,
who currently runs Standard Life Investments, its asset-management
arm. Mr. Skeoch's appointment bears testament to how managing money
became the company's main business during Mr. Nish's six years at
the helm.
Since 2009, the company, which is 190 years old, has grown from
a value of £ 4.8 billion to £ 9.3 billion, while paying out £ 3.7
billion to shareholders.
Sir Gerry Grimstone, chairman, said that Mr. Nish had "shown
great leadership" during his tenure. "He has changed the shape of
Standard Life allowing us to successfully grow globally through
world-class investment management and distribution businesses," he
said.
Mr. Skeoch said he would emphasize "continuity" in his strategy
for the company, in particular expanding its U.K. retail-investment
business to capture more workers who are being automatically
enrolled in pension schemes following recent changes to British
savings rules.
When Mr. Nish took over in 2009, Standard Life managed £ 56.9
billion for its investment clients. It now manages £ 258.4 billion.
After selling off its banking and health-care insurance businesses,
it reinvested much of the money in acquiring new asset management
businesses, betting that serving the world's growing pension pots
and individual wealth would make for a better future than the
insurance business, whose profitably has been slashed by
historically low interest rates.
Most recently, Standard Life sold off its Canadian life
insurance business for £ 2.2 billion, more than half of which was
paid out to shareholders as a dividend.
Mr. Skeoch, the company's incoming chief executive, will take a
pay cut compared to his predecessor "to align [his pay] more with
the asset-management industry." Standard Life was criticized by
some corporate governance bodies earlier this year after Mr. Skeoch
and Mr. Nish were paid a combined £ 11.8 million.
Mr. Skeoch will be paid a base salary of £ 700,000 with bonuses
of up to 6.75 times that figure if he hits performance targets,
subject to discussions with the company's biggest shareholders.
Write to Juliet Samuel at juliet.samuel@wsj.com
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