Rich defends himself against dismissal rumours
Amid intense industry speculation on his future with Morningstar, chief executive and publisher Graham Rich has confirmed his immediate future with the research house.
Late last week Rich revealed exclusively to Money Management, that at the time of printing he would continue on in the role of chief executive and publisher as well as maintaining his shareholdings in the company.
“The fact is I remain the chief executive and a shareholder of Morningstar and remain committed to that position. I am also adamantly defending that position,” Rich says.
He also says that given that he owns a substantial part of the company it was highly unlikely he would be stepping aside.
The declaration comes in the face or rumours which claimed Rich had been dismissed by the company’s board and had sought legal action to overturn the dismissal.
Sources also claim that Rich’s shareholding in Morningstar over the past six months had been significantly reduced but Rich refused to comment that this was so.
He did confirm that a recent capital raising which sought to garner $10 million was abandoned and at that time similar rumours about a departure had also been circulating.
“I have run a research business, and maintained a shareholding, for more than 18 years and as far as I know there is no one else who has been there that long,” Rich says.
“In that time I have had a lot of cracks at my hide but to date I still retain it. Normally I roll over this type of thing, but when it strikes at the heart…”.
Rich says he would brief Morningstar staff, including the New Zealand office, about the rumours sometime this week.
The speculation and Rich’s response follow a tumultuous past six months for Morningstar.
As reported inMoney Managementin September, the research house underwent a complete review of its five business units earlier this year, a process that commenced in July and was aimed at preparing the company for future growth.
However, shortly following the review, Morningstar’s head of sales and high profile recruit Toby Potter, resigned, after only being with the company since January this year.
At the time of the review Rich described Potter’s resignation not as a result of a falling out, but rather a change in the role held by Potter.
Also at this same time, Morningstar’s Sydney staffing was increased from 20 to 50 employees. Three new business development staff were recruited to cope with the expected growth from new products and the ongoing support from the company’s subscribers.
More recently, Morningstar said it would take legal action against asset consultants Frank Russell after it considered a recent report by the later misrepresented the research house and its star ratings system.
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