A major reorganisation of Alliance Trust’s corporate structure has claimed its highest-profile name after former chief executive Katherine Garrett-Cox agreed to stand down.
The 48-year-old City high flyer spent more than seven years as chief executive of the Dundee-based Trust but had been sidelined in recent months following an ugly public battle with major shareholder Elliott Advisors over the make-up of the board and the company’s investment performance.
Ms Garrett-Cox and former chairman Karin Forseke set out to resist Elliott, and the Trust spent £3 million in fighting the hedge fund.
However, the defence strategy ultimately only bought time as Elliott agreed to back off from its activism for at least a year in return for two nominated directors joining the main board.
The Trust yesterday announced Ms Garrett-Cox, who lost her seat on the main board as part of the changes and has most recently been working as chief executive of subsidiary company Alliance Trust Investments, would leave the business after nine years next month.
The company’s annual report shows that Ms Garrett-Cox received a total remuneration package of £1.34 million in 2014 a figure that increased to circa £1.4m in the past financial year.
The document also notes financial provision for loss of office a clause that will see Ms Garrett-Cox leave her role with a further seven-figure payment.
She will not be replaced, and her duties will instead be assumed by the investment team headed by Peter Michaelis and ATI managing director Ramsay Urquhart.
New Trust chairman Lord Smith of Kelvin, who replaced Ms Forseke last month, said the ATI CEO role had changed significantly. He said: “Alliance Trust is undergoing significant change to improve both its operating performance and investment returns.
“It has always had investment expertise at its heart and Katherine has done much, over the past nine years, to refocus the investment portfolio on its traditional strengths in global equities.
“Alliance Trust is now moving swiftly to implement the changes announced last year which are designed to enhance shareholder returns.
“This process is well under way, and it is clear to us all that the role of chief executive of Alliance Trust Investments has changed significantly.
“I and the rest of the board wish Katherine every success in the future.”
ATI chairman Susan Noble said Ms Garrett-Cox had been key in establishing the investments business, a concern that now managed £5 billion of assets.
She added: “She leaves with the business in its best position for many years, evidenced by improving investment performance, a healthy level of funds managed for both Alliance Trust and third parties and the increasing opportunities for Alliance Trust Savings.”
Ms Garrett-Cox said she was proud of her time at Alliance Trust.
“It has been an honour to have had the opportunity to represent and protect the long-term interests of so many shareholders and to have been a guardian of the Trust’s historic purpose of investing for generations,” she said.
Shares rose 9.10p at 465.80p.