Morning:
8°c
One of the most closely watched succession battles for years came to an end today, when Standard Life finally unveiled its next chief executive.
Following months of speculation and what it claimed was a “global search” for the right candidate, the insurer has gone for the most obvious insider.
Finance director David Nish will succeed long-serving Sir Sandy Crombie as the top man in January. Crombie will stick around for a few months before leaving the company he joined more than 40 years ago.
Nish will be seen as a safe pair of hands in the City. He joined Standard Life in 2006 after earlier careers with Price Waterhouse and Scottish Power.
He will become ultimately responsible for overseeing the savings of 6.5 million UK customers and deciding in which direction to take the at times embattled insurer.
Although Standard is now seen as a solid player with significant financial strength, this has only come after several tussles with regulators.
A few years ago it was forced to move funds out of equities in order to boost its reserves, a decision that affected its performance and led some to question whether the insurer could survive on its own.
Lately, by focusing on pension products and fund management, it has regained credibility.
Nish has been seen as a likely candidate for some time, but he faced tough, internal competition from Keith Skeoch, the boss of Standard Life investments. External possibilities were said to have included Aegon chief executive Otto Thoresen and Lloyds Banking Group insurance director Archie Kane.
Nish, 49, will receive a basic salary of £700,000 before bonuses, pension payments and other benefits.
Sir Sandy, regarded — perhaps unfairly — as a typically dour, Scottish finance executive, was knighted in the last New Year Honours for services to the insurance industry. He is taking up a post as a non-executive director at the Royal Bank of Scotland.
Nish said: “I am immensely proud of what our organisation has achieved over the past few years and I am excited to be given the opportunity to lead Standard Life. In these challenging markets it is vital that we maintain the momentum we have built.”
Standard Life shares edged down 0.6p to 230.5p this morning.
