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Jessica Darnbrough
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The Aussie leadership team is in for a shake up and speculation is mounting that an executive from majority shareholder Commonwealth Bank of Australia (CBA) could be in the frame.
Last week, Aussie’s chief executive Stephen Porges announced his resignation from the brokerage after almost five years at the helm.
Mr Porges’ departure has brought to the fore wider speculation that CBA could be set to have a more active hand in the day-to-day running of Aussie.
Rumours that CBA would up its initial 33 per cent stake in the business have been circulating since it invested in the brokerage back in August 2008.
But as the bank geared up to increase its share of the brokerage to 80 per cent, a transaction that took place at the end of last year, there was conjecture that CBA would look to place one of its senior representatives in a position of power at the brokerage.
Mr Porges’ departure from Aussie has ignited discussion across the industry on who could be poised to make the move.
The Adviser contacted CBA to get some clarification on the matter.
While the bank would neither confirm nor deny the rumours, Kathy Cummings, CBA’s executive general manager third party and mobile banking, said that “any changes to Aussie’s leadership team will ultimately be made by Aussie”.
In addition, while CBA has been quick to distance itself from conjecture, it is interesting to note that industry veteran James Sheffield has returned to the third party space at the bank.
