'Time for IOOF to move forward': CEO Chris Kelaher departs
Embattled wealth manager IOOF has announced the departure of its long-time chief executive, Chris Kelaher, amid a legal battle with the banking regulator.
The group also said long-serving director Allan Griffiths had been elected independent chairman of the group.
Mr Griffiths has been acting chairman since December, when Mr Kelaher and chairman George Venardos stepped aside after the Australian Prudential Regulation Authority (APRA) launched legal action alleging they were not fit and proper people to run a superannuation fund.
IOOF and the executive team strenuously deny any wrongdoing and are defending the claim.
The company said Mr Kelaher would receive an exit payment of $1.27 million in lieu of his notice period. He would forfeit his long-term incentives, and the short-term incentives he was in line to receive would be subject to "look-back" provisions that would take into account IOOF's performance.
Wealth management boss Renato Mota, who had been acting chief executive since December, would continue in that role as IOOF conducted a search for a permanent replacement. Mr Mota is thought to be in a plum position to take this role.
Mr Kelaher said in a statement he was proud of what he had achieved over a decade running the group.
"In the interests of the company, it is time for IOOF to move forward under new leadership," he said.
"I wish the company every success in the future."
Mr Kelaher will continue on his current leave arrangements before ceasing employment on July 2.
Mr Griffiths has been acting chairman since December. Mr Venardos remains on leave from the board.
APRA has alleged that IOOF used money belonging to pension fund customers to compensate them for losses caused by the company. It last year said it had had concerns about conflicts of interest at IOOF since 2015, adding the firm had failed to address the issues for years.
IOOF's shares were 1.7 per cent weaker at $6.39 in early trade.
More to come