Investment manager and Financial Planning group Abrdn has begun the search for a new CEO after Stephen Bird decided to step down after four years at the helm.

The company said it had agreed with Mr Bird that now was the right time for the business to seek “fresh leadership.”

In February Abrdn reported that it had made a pre-tax loss of £6m last year, a major turnaround from the £546m loss posted the previous year. Heavy cost cutting at the firm had aided its recovery, the company said.

Abrdn said it wanted new leadership having completed the first stage of its transformation into a “modern and digitally-focused specialist asset and wealth management company.”

The company said the board and Mr Bird agreed it was the right time to hand over the reins to the leadership team he has assembled over the last four years.

Jason Windsor, currently group chief financial officer, has been appointed as interim group CEO, subject to regulatory approval, while a formal search process is launched which will include consideration of external candidates.

Mr Windsor and Mr Bird will work together until 30 June, the four-year anniversary of Mr Bird’s appointment. Abrdn said they will be aiming for a smooth handover. Mr Windsor joined the company last year.

Mr Bird’s 12-month notice period started on 24 May and he will be on gardening leave with effect from 1 July to 31 December 2024. He will be eligible for a pro-rated Annual Bonus in respect of the 2024 financial year. As a ‘good leaver’ he is not eligible for any remuneration payments or payments for loss of office.

Mr Windsor will receive a salary supplement of £200,000, pro-rata for the duration of the interim period.

Mr Bird, 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.

“Abrdn's position in the UK wealth market has been transformed through the acquisition of Interactive Investor together with investment in our Adviser business; these are essential moves as the ongoing democratisation of savings responsibilities reinforces the demand for simple and cost-effective platform solutions to support individuals as they address their long-term financial needs.

“It has been a privilege to lead Abrdn through an intensely challenging time in our industry and I am grateful to my colleagues for their support and commitment to serving our clients with distinction. 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."

Sir Douglas Flint, Abrdn chairman, 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.

"Adapting the inherited business model to be capable of generating sustainable and profitable growth required strategic vision, intense hard work and the courage to make tough but necessary decisions. 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. We owe him a great debt of gratitude and wish him well in the next phase of his career."

In April Abrdn report its Q1 AUMA and Flows Trading Update, with AUMA up by 3% to £507.7bn and total net inflows £0.8bn in the quarter. The company said today that trading and net flows so far in Q2 have shown similar trends to Q1. Abrdn will announce its first half results on 6 August 2024.