Magellan CEO David George to immediately depart
Magellan Financial Group’s CEO and managing director, David George, has stepped down, effective today, after just over a year in the role.
He will also give up his role of director of the board.
Magellan said in an ASX announcement that Andrew Formica will take on the role of executive chairman while they search for a new CEO.
Formica – who was appointed chairman in July and is the former CEO of Janus Henderson – said he is committed to leading Magellan until a new CEO is appointed. He thanked David for his contribution during a challenging time for the business, including his role in stabilising and improving the core funds management business.
“The board, in consultation with David, believe it’s time to refocus leadership which will accelerate the progress made to date,” he said.
“The board remains focused on the delivery of exceptional investment performance for our clients and are well positioned to continue to explore organic and inorganic growth opportunities.”
It comes just weeks after the firm announced it had completed a board renewal process.
Earlier this month, Magellan announced it had seen funds under management decline from $39 billion to $35 billion in September, with the largest loss in the global equities division. This is divided between $16.2 billion in retail and $18.8 billion in institutional, down from $17.5 billion and $21.5 billion respectively at the end of August.
“With the board renewal process now complete, and following today's announcement, the business is positioned to continue the journey to restore Magellan to its rightful place as Australia's leading fund manager,” Formica concluded.
Canadian George was brought on board in May 2022 from the Future Fund, receiving a base salary of $1.8 million, as the asset manager looked to rebuild in the wake of Hamish Douglass’ temporary leave of absence.
At the time of his arrival, George said: “Magellan has a significant depth of talent and has demonstrated consistent investment and operational excellence through time. I look forward to working with the team to build upon this track record of success, generating strong and sustained investment results for our clients.”
Among his aims was rebuilding the firm’s assets under management to $100 billion in five years and improving performance of the flagship Magellan Global fund.
He was later appointed as chief investment officer in October 2022 but stepped back from the role in August 2023.
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The only thing "rightful" at present, is Magellan's current position on the back of poor results and confusion over leadership and direction. They can "strive to return" to the position of Australia's leading Fund Manager, but to believe it is their "rightful" place displays an ongoing arrogance and lack of awareness that likely got them to into their current situation in the first place...