Aberdeen's chief executive has stated that the hunt for a new chair is "in full swing," as the asset manager continues its prolonged search for a successor to the outgoing chairman.
CEO Provides Update on Chair Recruitment
Stephen Bird, CEO of abrdn (the firm's stylized name), told investors on Thursday that the board is actively seeking a new chair. The search has been ongoing since September 2023, when Sir Douglas Flint announced his intention to step down after a decade in the role. Bird emphasized that the process is progressing, despite the extended timeline.
"We are in full swing with the search for a new chair," Bird said during a call with analysts. He added that the board is committed to finding the right candidate to lead the company through its next phase of transformation.
Background on the Prolonged Search
The search for a new chair has drawn attention due to its length. Sir Douglas Flint, who has chaired abrdn since its formation in 2017 from the merger of Standard Life and Aberdeen Asset Management, agreed to stay on until a successor is found. The company has faced pressure from shareholders to accelerate the process, particularly as it undergoes a strategic overhaul under Bird's leadership.
According to sources familiar with the matter, the board has considered both internal and external candidates, but no final decision has been made. The delay has sparked speculation about difficulties in attracting top talent, given the challenges facing the asset management industry.
Impact on Company Strategy
The chair search comes at a critical time for abrdn, which has been restructuring to improve performance. The company reported assets under management of £495.7 billion as of June 30, 2024, down from £500 billion at the end of 2023. Bird has been cutting costs and refocusing the business on core areas such as investments and insurance.
"Having a new chair in place is important for governance and strategic direction," said a corporate governance expert. "But it's also crucial that the board takes the time to find the right person."
Market Reaction and Outlook
Shares in abrdn have fallen about 10% over the past year, underperforming the FTSE 250. Investors are watching for any announcements regarding the chair appointment, as well as further updates on the company's turnaround plan.
Bird reiterated that the board is making progress and expects to provide an update in due course. "We are committed to a thorough process," he said. "When we have news, we will share it."
