- Andrew Formica will assume the role of Executive Chairman at Magellan Financial Group (ASX:MFG)
- David George steps down as CEO and MD of Magellan Asset Management, and a search for a new CEO is underway
- Magellan continues in its efforts to become a leading fund manager in Australia
- MFG is down almost three per cent, trading at $6.34 at 11:03 am AEDT
Magellan Financial Group (ASX:MFG) has announced changes in its leadership with the appointment of Andrew Formica as Executive Chair, following the resignation of David George from his role as CEO and Managing Director of Magellan Asset Management.
Mr George has also stepped down from his position as a Director of the Board with immediate effect.
Magellan also announced that Mr George would remain available for a handover until December 31, 2023, during which he will be compensated for the balance of six months’ notice.
“The Board, in consultation with David, believes it’s time to refocus our leadership to accelerate the progress we’ve made. Our immediate focus is on retaining, attracting, and incentivising our talent to drive performance excellence,” Mr Formica said.
To achieve this goal, Magellan is addressing Employee Share Purchase Plan (ESPP) Loans and plans to provide additional retention payments to clear ESPP Loan balances for most staff by September 2025
Moreover, the company is in the process of developing a new employee accountability and alignment model for short-term and long-term incentives, with a specific emphasis on aligning these incentives with positive client and shareholder outcomes. This new model is expected to be implemented by June 30, 2024.
MFG shares were down almost three per cent, trading at $6.34 at 11:03 am AEDT.