| Brian Stewart planning to quit Standard Life to focus on S&N |
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LONDON: Sir Brian Stewart, chairman of Standard Life, is planning to step down within a year of the insurance and financial services major floats on the stock exchange so that he can focus on Scottish & Newcastle Plc., according to newspaper reports. Standard Life is set for 5-billion-pound flotation in July this year.
This is contrary to an earlier indication that Sir Brian would be leaving Scottish & Newcastle, U.K.'s largest brewer, to establish a mutual fund and insurance behemoth that will be No 1 in Europe. He has been with Scottish & Newcastle for nearly 30 years and its chairman since 2000.
The reports said Standard Life is likely to include a succession plan in its prospectus for listing on the exchange.
The country's Higgs code on corporate governance stipulates that one person cannot hold the chairman's position in two FTSE100 companies. It is certain that Standard Life will turn out to be one of the blue chips and will find a place in the index within a year of its flotation.
Analysts reacted to the news saying the decision, if true, could prove to be damaging to Standard and Life's flotation. Sir Brian has been on the board of the insurer for the last 13 years.
Standard Life has been resisting going public and warding off takeover attempts. Many analysts had described its decision on flotation as a major U turn, and several feel it is more on account of financial weakness. However, of late, the firm has been emphasising more on profitability rather than pure market share.
The firm has been preparing for the listing in the past two years and in the process it had cut some 3,000 jobs and introduced several cost saving measures. It had recently engaged Trevor Matthews to head its life and pensions and Alison Reed as finance director. There were other major management changes, including the exit of Amanda Forsyth departed as investor relations director.
Sir Brian, according to sources, may formally announce his decision sometime in March.
The firm is expected hold discussions on the pay-offs to policyholders ahead of the flotation. It is estimated that each policy holder will get a minimum of 500 pounds while there will be a variable payment depending on the period of holding of the policies. The quantum of payment could be a major determining factor in getting a vote favouring flotation. The firm needs 75 per cent of policyholders to vote for the listing.
Posted
on : Mon, 09 Jan 2006 10:05 GMT | Insurance News
By : Pippa Fielding
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