Legal & General Group Plc has named an outsider as its next chief executive officer to replace Nigel Wilson, who’s stepping down after more than a decade at the helm.
António Simões, who’s been the regional head of Europe at Banco Santander SA, is set to lead the UK insurer starting Jan. 1, according to a statement Thursday. The former McKinsey & Co. partner spent 13 years at HSBC, including as CEO of UK and Europe, before joining Santander. He’ll receive a base salary of £1.18 million ($1.5 million) plus bonuses and compensation for leaving the Spanish bank.
Separately, Banco Santander announced that Pedro Castro e Almeida will replace Simões as regional head for Europe.
The appointment of Simões follows a “rigorous, global, selection process” managed by L&G Chair John Kingman, the company said. When Wilson announced his decision to step down in January, L&G said it would consider both internal and external candidates. Ultimately, Simões’ track record at two of Europe’s biggest banks helped him land the job.
“António brings a formidable leadership track record at the most senior level of financial services, working across complex, global organizations,” Kingman said in the statement.
Bloomberg Intelligence analysts Kevin Ryan and Charles Graham, however, said that the hiring is a “bold” move, considering Simões has no experience in insurance.
“Appointing a CEO with no insurance experience to run a complex life business” like L&G’s “could damp investor sentiment,” they wrote in a research note on Thursday. That “likely means no major management decisions will occur” until the second quarter of 2024, they wrote.
Under Wilson’s leadership since 2012, Legal & General Investment Management grew to become one of Europe’s largest asset managers, overseeing more than £1.3 trillion ($1.6 trillion). Wilson also established Legal & General Capital, the group’s alternative asset platform, in 2013. The platform has enabled investments in infrastructure and housing projects across the UK.
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Simões is also one of the few openly gay executives in the financial services industry. “When I first became a CEO, I was able to do so as an openly gay man, standing on the shoulders of the giants before my time who paved the way,” he wrote in a LinkedIn post last year. “I feel I have the responsibility to set an example and in turn, pave the way for younger generations.”
Last year, Simões was among candidates in the running to succeed Jose Antonio Alvarez as CEO of Santander, Bloomberg News has reported. The Madrid-based lender eventually named Hector Grisi for the role.
(Updates with analyst comment in sixth and seventh paragraphs.)
