Standard Life launches global search for Crombie's successor

STANDARD Life is to launch a search for a new chief executive after Sir Sandy Crombie ended months of speculation yesterday by confirming he will step down after 42 years at the Edinburgh-based insurer.

A team of headhunters will be appointed to scour the world for the right person to take over from Crombie, who led the company through its successful demutualisation to stock market flotation in 2006.

Crombie's departure from the group had been the subject of intense speculation. The chief executive, whose remuneration package last year amounted to £2.31 million, turned 60 last month but he has always refused to be drawn on a timescale for stepping down.

It is understood that by putting in place the process to appoint a successor to Crombie, the search for a replacement for Trevor Matthews, the firm's chief executive of UK financial services, who stepped down last January, will be put on hold.

The role as head of the UK operation was taken on as an extra duty by Crombie alongside his other responsibilities as an interim measure since Matthews' unexpected departure to become chief executive of Friends Provident.

Announcing the move to the Stock Exchange yesterday, Standard Life chairman Gerry Grimstone said: "Sir Sandy Crombie and the board have agreed that the process of identifying his successor should commence in 2009.

"There is no fixed timetable and we do not envisage making any further statements about this matter until a successor is confirmed and a timetable for transition is set."

Asked about the possible candidates, Grimstone told The Scotsman: "We have some very good internal people but the principle that will guide us is to find the best man or woman for the job."

He added: "We are doing this from a position of strength and doing it properly. We owe it to the company to find the best possible person."

Grimstone added that Crombie, who joined Standard Life as a trainee actuary in 1957, was "very much in charge still".

He continued: "Sandy has done the most fantastic job. The company would not be where it is today, were it not for Sandy's efforts over the last five years."

Industry sources have tipped Standard Life finance director David Nish and Standard Life Investments' Keith Skeoch as the most likely replacements , while Aegon chief executive Otto Thoresen and Lloyds Banking Group executive director for insurance Archie Kane are also possible candidates.

Thoresen has always been careful not to rule himself out as a possible Standard Life chief executive and a source close to Aegon said: "I am not surprised Otto's name is on the list."

Crombie's departure could be a major blow to Scotland's shaky financial services industry, which has been hit by the crisis which has overcome some of the major banks.

One financial services insider said: "From Sandy's point of view this has come at a time when the pressure is off him and he can consider retirement. However, it could be said that 'Corporate Scotland' needs Sandy to stay, given the current situation. Sandy has become king of the castle in the sector."

Crombie will remain as chief executive until a replacement is found.

Nicholas Furze, headhunter at Glasgow-based Odgers Ray & Berndtson, said the company would be likely to launch an immediate global search for a suitable candidate.

He explained: "Once the headhunters get on to it, it could all be wrapped up in a matter of months. Standard Life is a global business and they would be looking for someone who has experience in a comparable sized, comparably complex and comparably global company."

Runners and riders – six who are in the frame for the top job

MARK TUCKER

TUCKER announced he was to step down from his role as chief executive of Prudential, after four years, only last week. Having spent all but two of the last 25 years at the Pru, Tucker had a brief spell at HBOS as an executive director and then finance director, between 2002 and 2005.

KEITH SKEOCH

AN ECONOMIST by training, the head of Standard Life Investments, is another strong internal candidate. Critics claim Skeoch does not exude the same "warmth" as Nish, but after ten years with Standard Life, initially as chief investment officer, he knows the business.

ARCHIE KANE

HEADHUNTERS could not complete a thorough search for a new chief executive without considering Kane.

Formerly the chief executive of Scottish Widows, Kane has taken on the new role of executive director for the insurance division at the Lloyds Banking Group.

TREVOR MATTHEWS

MATTHEWS quit Standard Life last January after failing to secure a promise that he would suceed Crombie.

Now chief executive of smaller rival Friends Provident, some say Australian Matthewsis unlikely to want to return. May find the challenge hard to resist.

DAVID NISH

HIS lack of financial services experience made him a controversial choice for the role of finance director in 2006, but is a front runner for the top job.

He is popular with investors.Insiders say the former Scottish Power FD has "got up to speed" very quickly.

OTTO THORESEN

THE Aegon chief executive has proved himself in growing the business of the UK division of an international insurance company. Seven years younger than Crombie, he would be in a strong position to lead the company through its next stage of development.