IAG has announced the retirement of Mike Wilkins as MD/CEO from 16 November 2015, with Peter Harmer, the current CEO of IAG Labs to take over as MD/CEO from that date. I've previously noted the advantages of an internal hire in terms of the network of relationships both within and outside the organisation and the fact they are usually cheaper than an external hire (Harmer's fixed rem as MD/CEO will be $1.7 million; Wilkins is $2.112 million). However what is really interesting about this appointment is the roles Harmer has performed in recent times at IAG: Chief Digital Officer and from only July 2015 this year the CEO of IAG Labs. While it will be interesting to see who now steps into that role, Harmer's 36 years of experience in the insurance industry both here in Australia and in the UK will prove valuable, particularly in light of the strategic relationship with Berkshire Hathaway. Today's announcement also means resolution 2 on the AGM agenda for 21 October (grants to current MD/CEO) should be withdrawn .
I've really been enjoying these posts Kym, thank you for the interesting insights. I think executive remuneration is an area which gets ignored by far too many investors (myself included), largely because we don't know what we should be looking for. It's great to see what the professionals are looking at in this area so I can improve my own analysis.
Thanks for the feedback Patrick and I'm glad you are finding them useful.