Newly-appointed Perpetual chief executive Geoff Lloyd has admitted a strong sense of urgency to sharpen the organisation’s strategy and speed up the implementation of fresh initiatives is associated with his current role.
Perpetual yesterday named Lloyd as its chief executive, replacing Chris Ryan who stepped down after a weekend stoush with the board. Lloyd is the third man to take the helm in a year.
Ryan’s departure was immediate and followed just under 12 months in the top job. His time at the helm saw the departure of respected portfolio manager John Sevior, a development that coincided with some heavy fund outflows.
“Clearly, the message from the board is there’s a strong sense of urgency,” Lloyd told InvestorDaily.
“I agree with the board on that but there’s no timeline. We’ll work as hard and fast as we can.”
In May, Ryan said Perpetual would cut about 6 per cent of its workforce.
In a statement yesterday to the Australian Securities Exchange, Lloyd vowed to deliver “further meaningful cost reductions”.
Asked whether the statement signalled deeper job cuts, he said: “This priority isn’t just about headcount that we’ve agreed with the board. It’s about broader processes and partnerships that we might be able to enter into.”
He cited Perpetual’s Project Ice, the process of quitting its $9-billion platform business and outsourcing it to Macquarie.
“We can then focus on advice and look forward to future growth around that part of our business,” he said.
Private wealth contributes about 24 per cent of group revenue and Perpetual has long been keen to boost that percentage by leveraging off its ace investment management division, which contributes just over half of overall revenue.
Lloyd said Perpetual would increase its adviser ranks, which number about 100, by hiring from the market and through acquisition. Asked whether the company was in talks with potential targets, he said: “They’re confidential, any discussions we have, so I wouldn’t be prepared to go into any detail.”
Perpetual private client general manager Nick Langton will act as Lloyd’s replacement in the role of private wealth and retail distribution group executive.
Asked when a permanent appointment would be made, Lloyd said: “We’re going to run an internal and external process and get the best candidate.”
When asked whether Ryan’s departure could reopen the door to talks with Sevior, chairman Peter Scott told InvestorDaily: “John has been an excellent employee of Perpetual and has now moved on to the next phase of his career.”
