Adrian Sainsbury has resigned as the group chief executive of Close Brothers after a four-month medical leave.
Sainsbury, who took up the CEO role in 2020 following over a decade at the firm, initially joined Close Brothers as the head of its commercial division and later became director of the banking subsidiary in 2013, as reported by .
His medical leave began in September, which was described by the merchant bank as temporary. "He is recuperating well and expected to make a full recovery," the company stated today.
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In the interim, Mike Morgan has been appointed as the new group CEO, having covered for Sainsbury during his absence. Morgan presented the bank's full-year results last September, which included plans to divest its asset management division to bolster capital in light of costs from the motor finance review.
A recent court ruling has caused turmoil in the motor finance sector, with RBC predicting a potential £640m financial impact on Close Brothers, nearly twice its market valuation. The company resumed its motor finance lending in November, introducing measures to ensure broker compliance with new regulations.
Morgan, who has served as the group finance director for Close Brothers for 15 years and held prior positions at the Royal Bank of Scotland and Scottish Provident, expressed admiration for the firm. "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," Sainsbury remarked in a statement.
He also extended his gratitude to the team: "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."
The details regarding Sainsbury’s remuneration upon stepping down from the board will be disclosed to the public soon.