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Stephen Bird has stepped down as chief executive of Abrdn after a four-year tenure set to be remembered for a rebranding that failed to restore the fortunes of the UK asset manager.
Abrdn said on Friday that, “following the significant strategic repositioning of the company”, it was the right time for Bird to step aside.
His exit comes as the board prepares to decide later this year whether to reappoint the chair, Sir Douglas Flint, for a third term, which Abrdn said was a standard process for companies.
Bird, who joined promising to turn around the group after a successful career at Citigroup, will stay at the company until the end of June to help with a transition.
Chief financial officer Jason Windsor, who joined the company in October, has been appointed interim chief executive while the board searches for a permanent successor.
Bird’s departure follows a turbulent period for the company, the highest-profile of a number of UK asset managers that have faced pressure to lower fees to compete with bigger rivals.
Since Bird took the reins, Abrdn has twice been ejected from the FTSE 100 and the group’s shares have fallen about 30 per cent over the period. He oversaw a much-ridiculed rebranding of the business.
Abrdn said the board and Bird had “together agreed that it is the right time” for new leadership.
Windsor joined Abrdn after little more than a year as chief financial officer of UK housebuilder Persimmon.
Samuel Johar, chair of board advisory group Buchanan Harvey, said Windsor had a strong chance of becoming Bird’s permanent successor. “He has substantial financial services experience and Abrdn cannot afford a vacuum for too long,” said Johar, adding that the company could become a takeover target.
Shares in Abrdn closed up just over 1.6 per cent to 158.6p in trading on Friday.
Analysts at Citi said they “expect the departure may be due to differences in strategic vision,” following speculation that Bird suggested to the board selling off the asset management division — an idea that both Bird and Abrdn have dismissed. The analysts added that “this development may reduce the likelihood of any break-up of the group”.
During his tenure, Bird attempted to diversify Abrdn by expanding its wealth management business and by selling more investments directly to consumers. In 2021, it bought Interactive Investor, the UK’s second-largest consumer investment site by assets.
He also restructured underperforming parts of the business, including selling off Abrdn’s £7.5bn private equity arm and its 50 per cent stake in a joint venture with the bank Virgin Money.
“You’ve got to break some eggs while making the omelette,” said Charles Harvey of leadership advisory firm Per Ardua. “Stephen was comfortable doing this in order to drive much-needed change; it will take time now to see how Abrdn is set up to tackle the ever more challenging industry environment.”
Flint said Bird “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”.
