UK online trading leader IG Group Holdings plc (LON:IGG) has announced that CEO Peter Hetherington is stepping down both from his management role and the Board, effective immediately.
The company said it is “well advanced” in its search for a new CEO, with IG Group CFO Paul Mainwaring assuming the Interim CEO title in the meantime.
Peter Hetherington succeeded Tim Howkins as CEO of IG in late 2015. He had been with IG for more than 24 years.
The move comes at a very interesting time for IG. The company set Revenue and Profit records under Mr. Hetherington’s leadership, but its last fiscal quarter saw a 13% Revenue decline due mainly to the new regulatory climate – one of the largest challenges facing IG in recent years – including a limit in the leverage IG can offer to Retail clients when they trade Forex and CFDs.
The following is the full statement issued by the company:
27 September 2018
IG GROUP HOLDINGS PLC
IG Group Holdings Plc (“IG”, “the Group” or “the Company”), a global leader in online trading, today announces that Peter Hetherington will step down as CEO of the Group. Whilst Peter will continue in IG’s employment and will help with the transition to his successor until the end of the financial year, he will step down as Group CEO and from the Board with immediate effect.
The Board is well advanced with its search for a new CEO. During the interim period Paul Mainwaring, IG’s CFO, will assume the additional role of Interim CEO until a successor is appointed.
Peter has spent over 24 years at IG, having joined as a graduate trainee in January 1994, working his way up through the organisation to be appointed as CEO in October 2015. As CEO of the Group, he has been instrumental in leading the Company through a period of significant regulatory uncertainty and further developing IG into a global leader in online trading. Over Peter’s 3-year tenure as CEO, IG’s PBT and EPS are up by more than 65%.
The Company has been considering as part of its normal succession planning process the leadership characteristics it needs for the next stage of its development. The Board has focused on finding a CEO with wide global experience of the broader financial sector who can develop the business using its industry-leading technology platform, geographic presence and product innovation as a base.
Andy Green, IG’s Chairman, said:
I would like to extend our sincere thanks to Peter for his tremendous contribution to the Group. Peter has been pivotal to the success of IG during his many years of service, particularly during the last three years during which he has successfully steered the Company through an unprecedented period of regulatory uncertainty whilst delivering strong earnings and profits growth. I particularly commend Peter for his strong ethical leadership of IG and his management of its recent performance. The Company will continue to focus on the delivery of its immediate priorities that Peter has set which the Board believes are successfully positioning IG for its next stage of development.
Peter Hetherington said:
When I joined IG in 1994 the Company employed fewer than 25 people and had revenues of £16 million and profits before tax of £0.8 million. There are today over 1,700 people working in 15 countries with revenues of over £550 million and profits before tax of over £280 million.
I wish the Company every success and am proud of the recent progress we have made in improving engagement, diversity and in developing the many very talented people who work at IG. There is a great deal of change underway in the retail trading industry and I have every confidence that this team will continue to drive the business forward successfully in the future.
Finally, I would like to thank all of IG’s employees, past and present, for their friendship, hard work and dedication which has make the last 24 years such an enjoyable and rewarding experience. I would also like to thank our hundreds of thousands of clients from all over the world who have put their trust in IG over the years. To our many loyal shareholders, I want to thank them for the faith they show in the Company.