Crombie's future now a soap opera, says SL chairman

Published on Saturday 2 February 2008 14:51

GERRY Grimstone, the chairman of Standard Life, says the continuing speculation over the future of chief executive Sandy Crombie has become "a soap opera" and that he has the full support of the board.

Crombie's position was again thrown into doubt after the departure last week of UK life and pensions boss Trevor Matthews, which appeared to leave the board weakened and the company vulnerable to takeover.

Speaking about the speculation over Crombie's future, Grimstone said: "It has become a soap opera. He is 58 and doing a good job."

Critics say the company is drifting and that Crombie has overseen a muddled strategy, including a switch from organic growth to attempting a 5bn acquisition. But the chairman said: "The process of moving from a mutual to a plc takes time. It is like a privatisation."

He also refuted claims that the Standard Life board was split over the bid for Resolution Life and that Matthews, who is to become chief executive of Friends Provident, opposed the offer. Matthews was "positively enthusiastic about it" and presented the strategy on why the company should try to acquire it, he said.

Grimstone's comments, in an interview with Scotland on Sunday, lay to rest constant speculation that Matthews disagreed with the bid and that disagreements over strategy may have been a factor in his decision to leave.

"The board was completely unanimous on Resolution," said Grimstone. "We would be barmy to have gone into it if the bloke who was going to run it was not enthusiastic."

Matthews' appointment at Friends Provident emerged just before it announced the results of a strategic review that left the City unimpressed. The company will sell some assets, including its 52% stake in F&C Asset Management.

But JC Flowers, the US private equity firm, has indicated it may bid for the company and there was speculation that Matthews will never step into the role. He is on six months' gardening leave until July 29. It is thought he may have negotiated a two-year contract, ensuring a potential 2m pay-off on top of an estimated 6m he has earned from his four years at Standard Life.