OM Asset Management Replaces CEO
After the departure of its CEO last year, the $243 billion firm has promoted its CFO to the top job.
OM Asset Management has named Stephen Belgrad president and chief executive officer, the firm’s first new CEO since becoming independent from Old Mutual.
OMAM said Thursday that Belgrad, the firm’s chief financial officer, will start his new leadership positions March 2. He replaces Peter Bain, who last year stepped down from CEO as part of a succession plan that included Old Mutual exiting its ownership of the asset management firm, according to an OMAM announcement in June.
OMAM, which had $243 billion of assets at the end of last year, is well positioned to grow organically and through acquisitions, according to Belgrad. The firm’s stock has gained 24 percent over the last 12 months, and 26 percent since going public at $14 a share in late 2014.
“We are committed to growing and diversifying our business, and believe we provide a compelling value proposition and home for traditional and alternative boutique asset managers,” Belgrade said in Thursday’s statement.
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OMAM Chairman James Ritchie, who has been serving as interim CEO, said in June that Bain was leaving after he “successfully accomplished his mission” of overseeing the firm’s IPO and Old Mutual’s exit from the asset management firm.
OMAM paid Bain $7.7 million in 2016, including $3.6 million in stock and a $650,000 salary, according to the firm’s most recent proxy statement. As CFO, Belgrad earned a total compensation of $2.2 million in 2016.
The firm released its 2017 earnings report Thursday, showing net outflows of $6 billion for the calendar year. Of that, $3.7 billion exited in the fourth quarter, which Ritchie described as “challenging” in the earnings announcement.
Investment groups under OMAM’s multi-boutique umbrella include Boston-based quantitative shop Acadian, value manager Barrow, Hanley, Mewhinney & Strauss, and small-cap specialist Copper Rock Capital Partners.
OMAM’s stock dropped about 1.3 percent Thursday to close at $17.66.