Michelle Scrimgeour, CEO of Legal & General Investment Management and vice-chair of the Investment Association, is stepping down from her role after five years in the seat, it was announced today – as the group lays out a new strategy for “sustainable focus, sharper growth, enhanced returns” that includes combining LGIM into a new group asset management division.Â
In a Q2 update published today, Legal & General laid out a “refreshed” set of strategic and financial targets that include growing its retail and institutional retirement business by around GBP50bn, respectively, over the next four years. Notably, the firm is also restructuring its asset management capabilities, bringing LGIM and Legal & General Capital (LGC, the group’s alternative asset platform) together as a unified global public and private markets asset manager.
Michelle Scrimgeour, who took on the LGIM CEO role in 2019 after several years as EMEA CEO of Columbia Threadneedle, will be leaving the firm.
“I have decided that this is the right time to step down as CEO,” said Scrimgeour in a post. “It has been an immense privilege leading LGIM, and I am proud of our many achievements… For me, this is a natural moment to reflect – and I’ve decided that now is the right time to embark on a new chapter and allow new leadership to take the company forward.”
Scrimgeour will continue as CEO of LGIM while the group looks for a successor, and will lead the transition and establishment of the new asset management division with Laura Mason, former CEO of LGC, who has been appointed group CEO of Private Markets. Both will report to Legal & General group CEO.
The group is targeting a 6-9% annual EPS over the next three years with a targeted operating return on equity of 20%, and plans to return “more money” to shareholders, starting with a GBP200m share buyback in 2024.
“Over the last five months we have rigorously reviewed our business, listening to investors, customers, partners and employees. This work has deepened my belief in our strong foundations and excellent potential,” said Simões. “Our vision is for a growing, simpler, better-connected L&G, focused on three core business divisions, and set apart by our shared sense of purpose and powerful synergies.”