Standard Life CEO David Nish to Step Down

The man who transformed Standard Life PLC from a Scottish insurance company to one of the U.K.'s biggest international asset managers is standing down as its chief executive.

David Nish will hand over the reins in August to Keith Skeoch, who currently runs Standard Life Investments, its asset-management arm. Mr. Skeoch's appointment bears testament to how managing money became the company's main business during Mr. Nish's six years at the helm.

Since 2009, the company, which is 190 years old, has grown from a value of £ 4.8 billion to £ 9.3 billion, while paying out £ 3.7 billion to shareholders.

Sir Gerry Grimstone, chairman, said that Mr. Nish had "shown great leadership" during his tenure. "He has changed the shape of Standard Life allowing us to successfully grow globally through world-class investment management and distribution businesses," he said.

Mr. Skeoch said he would emphasize "continuity" in his strategy for the company, in particular expanding its U.K. retail-investment business to capture more workers who are being automatically enrolled in pension schemes following recent changes to British savings rules.

When Mr. Nish took over in 2009, Standard Life managed £ 56.9 billion for its investment clients. It now manages £ 258.4 billion. After selling off its banking and health-care insurance businesses, it reinvested much of the money in acquiring new asset management businesses, betting that serving the world's growing pension pots and individual wealth would make for a better future than the insurance business, whose profitably has been slashed by historically low interest rates.

Most recently, Standard Life sold off its Canadian life insurance business for £ 2.2 billion, more than half of which was paid out to shareholders as a dividend.

Mr. Skeoch, the company's incoming chief executive, will take a pay cut compared to his predecessor "to align [his pay] more with the asset-management industry." Standard Life was criticized by some corporate governance bodies earlier this year after Mr. Skeoch and Mr. Nish were paid a combined £ 11.8 million.

Mr. Skeoch will be paid a base salary of £ 700,000 with bonuses of up to 6.75 times that figure if he hits performance targets, subject to discussions with the company's biggest shareholders.

Write to Juliet Samuel at [e-mail]

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