Close Brothers chief executive steps down after medical leave
Close Brothers group chief executive Adrian Sainsbury has stepped down from his role after four months of medical leave.
The FTSE 250 CEO began in the role in 2020 after more than 11 years at the company, joining Close Brothers as chief executive of its commercial arm before becoming director of the group’s main banking subsidiary in 2013.
Sainsbury began his medical leave on absence in September, which the merchant bank said at the time was temporary.
“He is recuperating well and expected to make a full recovery,” said the company today.
As a replacement, Close Brothers has appointed Mike Morgan as group CEO, who had taken on Sainsbury’s responsibilities while on leave.
The interim CEO hosted the bank’s full-year results in mid-September, which revealed it was set to sell its asset management arm to strengthen its capital position for costs relating to the ongoing motor finance review.
A recent high court ruling dictated a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment.
The review has left the motor finance industry panicking, with RBC forecasting as high as a £640m financial hit to Close Brothers, almost double its stock market value.
Close Brothers restarted its motor finance lending practice in November, but said it had implemented measures to verify broker compliance with the new requirements.
New Close Brothers CEO
Morgan has worked as group finance director of the company for 15 years, with previous roles at the Royal Bank of Scotland and Scottish Provident.
“During my time at Close Brothers I have been deeply impressed by the enduring strength of our business model, and the dedication and expertise of our people,” said Sainsbury in a statement.
“I would like to thank the team at Close Brothers for their commitment and support, and wish them every success for the years to come.”
Details of Sainsbury’s remuneration arrangements on stepping down from the board are set to become publicly available shortly.