Perpetual Trustees: appointment of new Managing Director and CEO
14 Aug 2003
The Board of Perpetual Trustees Australia Limited (“Perpetual”) today announced the appointment of Mr. David Deverall as its new Managing Director and Chief Executive Officer.
Mr. Deverall, who is aged 37, has a strong background in the wealth management industry, having held senior positions in Macquarie Bank over the past seven years, where he is currently Group Head of the Funds Management Group.
Mr. Charles Curran, Chairman of Perpetual, said Mr. Deverall had a highly respected and successful career at Macquarie, holding various senior management positions prior to his current position, including Head of Strategy, Analysis and Planning and Division Head, Institutional Funds.
Mr Deverall will assume the role of Managing Director and CEO from Mr. Graham Bradley in mid-September 2003.
“We are very pleased to secure a senior executive of David’s talents and experience”, Mr. Curran said.
“David’s combination of strategic ability and commercial drive are ideal for leading Perpetual through its next growth phase. His specific skills in product innovation and experience in management across a broad range of products and services made him the outstanding candidate for the role. He also possesses an excellent overall understanding of the wealth management business and the wider financial services industry.”
Commencing his career in management consulting, Mr. Deverall worked first for the LEK Partnership then Bain International, before moving to Macquarie in the specially created role of Head of Strategy, Analysis and Planning.
Highlights of Mr. Deverall’s funds management career include development of the new product concept of true indexing, and growing Macquarie’s funds management business into niche geographic products and markets, including the development of the joint ventures in Malaysia, South Korea and Taiwan, together with niche asset management operations in Hong Kong and the UK. Most recently he presided over an increase in Macquarie’s total funds under management from $24.1 billion in June 2001 to more than $33.5 billion in July 2003.
Mr Deverall also brings to Perpetual skills to assist in the provision of corporate trust services to fund managers, superannuation trustees and securitisation participants, as well as the provision of wealth management services to estates, trusts and superannuation management for individuals, families and philanthropic foundations.
Mr. Deverall said he is looking forward to working with Perpetual’s management team and Board.
“Perpetual is one of Australia’s leading wealth management organisations and I’m excited to be leading its highly regarded management team; I treat the appointment as a privilege. With the team, I look forward to Perpetual taking advantage of emerging opportunities in our rapidly growing industry, as the group moves into the next phase of its growth.” he said.
“Perpetual’s position as an independent company with a trusted reputation and strong brand position offers excellent opportunities for further growth. Perpetual has a top management team which has achieved great success in its various areas of activities and I am very excited to have the opportunity of working with them.”
Mr. Deverall holds a Bachelor of Engineering (Mechanical) First Class Honours degree from the University of Sydney and a Master of Business Administration from the Stanford University Graduate School of Business.
Key components of Mr. Deverall’s remuneration package include:
- initial contract term to 30 June 2007.
- base salary of $500,000.
- short-term incentive payment to a maximum of $1million, subject to achieving performance hurdles established each year by the Board.
- long-term incentive (LTI) rights over shares and options to the value of $700,000 per annum, subject to achieving performance hurdles.
- the one off issue of shares in Perpetual to the value of $875,000, vesting over three years, to compensate for accrued but foregone Macquarie benefits.
- termination rights vary from zero to six months and a maximum of twelve months in certain nominated special circumstances.
The performance hurdles for LTI rights are those now applying generally at Perpetual and involve the LTI rights being divided into two equal portions with each portion being subject to a different hurdle. The Total Shareholder Return (TSR) hurdle provides for no vesting if Perpetual’s TSR is less than median relative to the comparator group (the ASX 100 excluding property trusts), 50% vesting if performance is at the median and an additional 2% for every one percentile increase in Perpetual’s relative position up to the 75th percentile. The earnings per share growth (EPS) hurdle provides that if EPS growth is less than 10% compound there will be no vesting, with 100% vesting if EPS growth is at or above 10% per annum compound. The hurdles are assessed over a three year period, other than in years close to the end of a contract period when a two year period is adopted.