Executive exits a sign of the times
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A number of recent high profile executive departures reflect the current economic environment and cost-cutting measures being undertaken across financial services and banking organisations, according to recruitment experts.
Australian Financial Services (AFS) chief executive and managing director Peter Daly was one recent executive made redundant from his position after the AFS board decided he was pursuing different objectives.
Similarly, Perpetual 2012 chief executive Chris Ryan left in February after disagreeing with the board on the company’s future direction.
Simone Mears, Profusion's head of executive management, said macro-concerns and political uncertainty in Australia were driving leadership exits.
“Investors haven’t had confidence in the market locally, inflows into platforms have been very low and this has impacted the financial planners, impacted the fund managers and everyone else in the corporate structure,” she said.
Despite this, she doesn’t believe there has necessarily been a higher turnover of executives than in the past.
“When organisations have made roles redundant based on cutting costs or making decisions to shut down businesses or projects, I don’t think senior executives are being targeted, I think it’s across the board”, Mears said.
Mergers and internal restructuring have impacted a number of executives, including former chief executive of Colonial First State Brian Bissaker and former Snowball chief executive Tony McDonald.
Bissaker’s position was cut after a significant reshuffle separated the advice function from the day-to-day business, while McDonald left Snowball in October last year after it merged with Shadforth Financial Group.
Matthew Drennan found himself on the line when his role as executive general manager of investments at Zurich Financial Services was made redundant after a company reshuffle in February.
According to Collins Consulting managing partner Sharon Mackie, the funds management industry is going through a “white collar recession”.
Executives in funds management businesses are no longer looking for the lucrative packages that were offered in the past. Instead, the majority were stepping down in search of more rewarding positions, Mackie said.
Indeed, a series of high-end executives have left major funds to start their own companies.
When former chief executive of Professional Investment Services (PIS) Robbie Bennetts moved on, the company started losing some staffers as they chose to join him in his private venture, Robbie Bennetts Enterprises.
Bennetts left after PIS merged with Centrepoint Alliance in June 2011, staying on as a part-time consultant until October when the relationship suddenly broke off.
After overseeing the successful integration of Tyndall and Japanese fund manager Nikko Asset Management, Craig Hobart chose to resign as managing director in March and said he was looking forward to a change.
“Executives are looking for a role that is going to provide them with the challenge and the mandate to make a difference,” Mackie said.
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