Scottish investment giant Abrdn on hunt for 'fresh leadership' as chief executive exits

Abrdn has begun the search for a new boss after announcing that chief executive Stephen Bird is to step down after a four-year tenure that included a controversial rebranding of the Scottish funds giant.

The group told investors that it had kicked off the process of “moving to fresh leadership”, having completed the “critical first stage” of a transformation programme. It said that following the “significant strategic repositioning” of the business, the board and Bird had agreed that it is the right time for him to hand over the reins to the team he has assembled over the last four years.

Chief financial officer Jason Windsor has been appointed as interim group chief executive, subject to regulatory approval, while a formal search process, which will include consideration of external candidates, is completed, Abrdn added.

The investment group's 2021 rebrand to Abrdn proved controversial. Picture: Scott Reid

The move comes amid a turbulent time for the Edinburgh-headquartered group, which rebranded to Abrdn from Standard Life Aberdeen in 2021. The rebrand, created by London agency Wolff Olins, divided opinion when it was announced, with one analyst at the time saying it was likely to leave investors “feeling dazed and confused”. Insurer Phoenix Group acquired the Standard Life Assurance business in 2018 and, in 2021, bought the iconic Standard Life brand.

During his tenure, Bird has undertaken a sweeping overhaul of the funds business, including axing some 500 jobs. The firm has also made some key acquisitions including buying investment platform Interactive Investor. In February, the group reported a pre-tax loss for the second year on the trot and saw its margins come under pressure. Some City analysts have been calling for a more radical strategy to clamp down on costs and make the business more profitable, including a potential break-up of the group.

Chairman Sir Douglas Flint said: “On behalf of the board, I want to thank Stephen for everything he has achieved at Abrdn over the last four years. He 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. While this was underway, Stephen took time to assemble the talent needed to execute successfully on his strategic vision and he passes on to them, with confidence, the responsibility to execute the next stage of our transformation.”

Bird, who will go on garden leave from July 1 to the end of 2024 but remain available to support the transition, said: “I am immensely proud of the work we have done together to simplify Abrdn and position the company for sustainable growth. Together with a refreshed leadership team and an incredibly committed group of colleagues at all levels, we have refocused our global investments business as a specialist asset manager, working to address its cost base and build mutually beneficial linkages with our wealth businesses. I leave the company well positioned, having embedded greater diversification of revenues, retained a strong capital position and, most importantly, developed a refreshed leadership team which is ready and eager to take on the challenge of realising Abrdn’s full potential.”