IOOF set to replace Turner in top job
IOOFis hunting for a new chief executive after deciding not to renew the contract of long serving incumbent Rob Turner after seven years at the helm of the Melbourne-based financial services group.
Turner, commenting on IOOF’s decision not to extend his contract beyond its expiration next June, toldMoney Management“the board has started the search for a new chief executive and I will stay until somebody is appointed. At present I am focused on the listing and what needs to be done to achieve that.”
IOOF Group chair Ray Schoer announced the decision by the board late on Friday afternoon with staff told of the decision earlier in the day, however the reasoning behind the board’s decision has not been revealed.
According to the group’s prospectus for its $40 million capital rasing, Turner will be paid $550,000 plus cash or shares of up to $300,000 for meeting certain unspecified performance targets as part of his final year salary package. He will also be entitled to “at least 125,000 shares” under the Executive Performance Share Plan.
Turner says he is pleased with his achievements, particularly with regard to funds under management (FUM) and performance. At the time of joining in 1996, the friendly society had an after tax profit of $4.1 million, reserves of $49 million, and $3 billion of FUM and advice.
The group now has $11.8 billion in FUM and reserves of $164 million. Its after tax profit for the 2003 financial year was $26.6 million.
Schoer praised Turner’s efforts including the sale and divestment of non-core assets which included retirement villages and a health fund, the establishment of boutique funds management businessPerennialand the acquisition of AM Corporation.
Turner says he has no plans for the future, but expects “to take a long holiday”, with IOOF stating he will still be a key player in the group’s listing in December.
As part of its initial public offering, the company is raising close to $40 million for acquisitions. Up to 13.3 million shares will be offered to members of the society, wholesale fund managers and some financial planners.
The share price will be between $2.75 and $3.25 — close to the indicative price quoted at the time of demutualisation in May last year.
The capital raising will offset the remaining payments for the AM Corporation business. According to the IOOF share offer prospectus, it still has to pay $17.5 million in deferred payments for its purchase of AM Corporation earlier this year, with the group paying $12.6 million in September 2004 and a further $5 million in March, 2005.
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