DAVID Nish will be thrown into the lion's den this week when the incoming chief executive of Standard Life will take questions on the company's third-quarter figures, though his future plans for the life assurer will naturally be the main point of interest.
We have a few clues already, starting with his need to find a head of UK life and pensions when Sir Sandy Crombie lets go. Crombie took on the role when Trevor Matthews left amid some acrimony two years ago. But Nish, who steps up from finance direct
or, will want someone in post soon enough, and I'm reliably told he will be making an appointment, not least because his exposure to the sector has been largely through the balance sheet rather than the core operations.
That said, Nish has been taking an increasingly central role in the firm's strategy, shaping the business he will inherit at the turn of the year. He was, for instance, deeply involved in the successful pitch for the BT pensions mandate, one of the biggest to be offered in recent times. What has divided opinion is his part in the £5bn bid two years ago for Resolution. It was ultimately aborted after whispers that the board was split. The bid itself followed some investor concern that having pledged the company to an organic growth path, Sir Sandy Crombie had surprised the City by launching his assault on Clive Cowdery's company.
Flip-flopping of strategy seemed to be something Standard Life could not shake-off and investors will want Crombie's successor to show certainty and consistency.
He will have little time to establish his and the company's credentials for growth amid continuing talk of consolidation in the sector. Friends Provident has finally got into bed with Resolution and the latter is said to have others in its sights, most probably Legal & General, and it is keeping an eye on developments at Lloyds in case Scottish Widows should be put on the market. As for Standard Life, there are those who say acquisition would add little to those in a position to buy. These days it is regarded as a relatively small player.
Maybe for that reason chairman Gerry Grimstone declares that he sees the company as neither an acquisitor nor a potential target, though even a company with a broadly spread shareholder base like Standard Life is not immune from determined predators. The company's focus on UK savings, particularly on self-invested personal pensions, does not appeal to those investors who prefer the geographical diversity of Prudential or the business portfolio of Aviva. They like L&G because of the bid potential. Nish may have to tolerate such speculation and investors will not want reminding of the Resolution episode if he should lead a bid of his own.
Those with longer memories will recall that he was finance director at ScottishPower when it acquired Pacificorp for a hefty £7bn in 1999 and was later forced to sell at a loss. Such episodes do tend to leave their mark.
Despite those reservations, he's been tipped for the top job ever since he arrived at Standard Life three years ago next month. He made an immediate impact, exhibiting an impressive grasp of a complex brief and appearing to demonstrate to the erstwhile favourite Matthews that there was more than one name being touted as Crombie's successor.
Since the latter declared his retirement in March his chairman has been criticised for taking too long to anoint the obvious candidate and there have been claims that Nick Prettejohn, until recently head of Prudential's UK business, and Patrick Snowball, formerly of Aviva, were in for the job but refused to move to Scotland. Whether true or not, Grimstone cannot be faulted for seeking out the right person to lead the company.
In truth, there would have been huge surprise if anyone but Nish had got it, even though he may lack some of his rivals' experience of the sector. This is also his first role as a chief executive and a FTSE 100 position at that. He must prove that he can transfer his energy and flair to a company which now stands alone in a Scottish sector bereft of independent life companies and severely short of stock market representatives.
Clarity essential on future of banks THE break-up of Northern Rock, likely to be announced on Wednesday, and a settlement over the future of Lloyds Banking Group, will bring some clarity to where their future lies, though the declarations by various authorities this past week have left us no clearer on how they may end up being supervised.
As Bill Jamieson outlines on page five, even senior members of the Bank of England cannot agree on how they must be regulated.
Debate is a wonderful thing, but so is clear thinking and decisive action. We seem as far as ever from creating a vision for the future.
