Hargreaves Lansdown - Management Change
Hargreaves Lansdown announces that Ian Gorham has decided to step down as Chief Executive no later than 30 September 2017, at which time Ian would have been Chief Executive for over 7 years. Chris Hill, currently the Group Chief Financial Officer, will become Deputy Chief Executive from 1 October 2016, with the intention that Chris will be confirmed as Chief Executive following Ian's departure*.
Mike Evans, Chairman, said: "Ian has done a fantastic job of leading Hargreaves Lansdown to its current position of a market leading successful FTSE 100 business, serving the investment needs of 836,000 clients and looking after £61.7 bn of the UK public's assets. The Board thanks Ian for his outstanding contribution to Hargreaves Lansdown. We are delighted to appoint Chris Hill as our Deputy Chief Executive."
Ian Gorham, Chief Executive, said: "I have loved leading Hargreaves Lansdown and working with the great clients, colleagues and shareholders of this Group. I have put my full energies into the business, something a unique Group of the quality of Hargreaves Lansdown demands. I believe the Group is in excellent hands and that shareholders and clients shall be best served by new zest being applied to the Group's activities. Now is the correct time for natural succession, as we look forward to an exciting future. I am proud of our collective achievements and would like to thank our clients, my colleagues and all those that have contributed to Hargreaves Lansdown's amazing story so far for their support. I am confident that Hargreaves Lansdown will go from strength to strength in the next phase of its growth."
Chris Hill, Chief Financial Officer said: "I am honoured to be appointed Deputy Chief Executive of Hargreaves Lansdown, one of Britain's great businesses and success stories. I look forward to working with our clients, colleagues and shareholders to build on the exceptional accomplishments of this Group to date."
Hargreaves Lansdown in the years 2010 - 2016**
· Clients have risen by over 500,000 from 330,000 to 836,000 (+153%);
· Profit Before Tax has risen from £86.3m to £218.9m (+154%);
· Assets under Administration have risen from £17.5bn to £61.7bn (+252%);
· Dividend has risen from 11.88p to 34.0p per share (+186%);
· Share price has risen from £3.38 to £12.43 (+268%);
· Continuous rise in market share, to 37.5% of direct investing market+;
· Continuously high client satisfaction and retention with one of the top Net Promoter Scores in the UK++.
*Subject to FCA approval
**All data compared at 1 July 2010 and 30 June 2016
+ Source: Platforum, independent research group
++ Net Promoter Score, NPS and NPS related emoticons are registered service marks, and Net Promoter Score and Net Promoter System are service marks, of Bain and Co Inc, Satmetrix Systems Inc and Fred Beichheld
Ian Gorham: (44 years old) ACA. Joined Hargreaves Lansdown on 1 September 2009 as Chief Operating Officer. Appointed Chief Executive Officer of Hargreaves Lansdown on 1 September 2010, succeeding Peter Hargreaves. Previously Head of Financial Services for the accounting partnership Grant Thornton UK LLP (2003-2009) and prior to 2003 held senior leadership roles at Deloitte LLP gaining experience working with a wide range of financial services businesses.
Chris Hill: (45 years old) ACA. Appointed Chief Financial Officer on 1 February 2016. Chris joined Hargreaves Lansdown from IG Group PLC, where he was CFO for 4 years. Chris has also previously gained experience in senior leadership roles at Travelex, General Electric and Arthur Andersen. Chris has extensive experience of successful retail financial services companies with high technology quotient in their business execution.
Ian Gorham has been Chief Executive of Hargreaves Lansdown since 1 September 2010. Ian has given notice he shall be stepping down as Chief Executive and leaving the Group no later than 30 September 2017.
Chris Hill, the current Chief Financial Officer, shall become Deputy Chief Executive from 1 October 2016. Appointing a new Chief Financial Officer to replace Chris will be a priority.
Chris Hill has been Chief Financial Officer (CFO) at Hargreaves Lansdown since 1 February 2016, having previously excelled in senior roles at IG plc and Travelex.
Having commissioned further rigorous external and internal assessment of Chris's capabilities, the Board believes that Chris has the ability to succeed Ian Gorham as Chief Executive, and promotion to Deputy Chief Executive gives Chris the opportunity to work alongside Ian to broaden his experience and to achieve a full smooth professional handover. It is the Board's current intention that Chris will be confirmed as Chief Executive following Ian's departure.
The Board's preference is to promote from within if at all possible and a clear requisite is a proven individual who can demonstrate a keen understanding of the culture and values of the firm. Given the above, the Board is of the opinion that it is not necessary to undertake an external search, but will be immediately starting an external search for a new CFO.
The Board will seek a new Chief Financial Officer through an open recruitment process in line with its stated policy of appointing on merit. Suitable advisers have been selected to support the Board in this process. Direct applications for the role from any prospective candidate will also be welcomed and encouraged. Interested candidates should contact Helen Buttanshaw at Hargreaves Lansdown ([email protected]) in the first instance.
Full disclosure of remuneration arrangements will be provided when Ian Gorham steps down and in our Directors' Remuneration Report in our Annual Report and Accounts 2016/2017. All financial arrangements will be in accordance with the Group's shareholder approved remuneration policy.
This information is provided by RNS