Rathbones hires former Man Group boss as Paul Stockton retires as CEO

Rathbones has named former Man Group president Jonathan Sorrell as its next chief executive as it announced Paul Stockton will retire after 16 years with the wealth manager.

Stockton, who was appointed CEO in 2019, will step down in September but will be available for handover support until the end of the year.

The wealth manager’s funds under management and administration swelled from £9billion to £109billion under the leadership of Stockton, who oversaw Rathbones’ 2023 acquisition of Investec Wealth & Investment.

Stockton previously served as managing director of Rathbones Investment Management and as group finance director from 2008, following a career that included roles at PwC, Old Mutual and Phoenix Group.

Chair Clive Bannister said Stockton’s ‘outstanding contribution’ to the group had helped make Rathbones ‘the leader in Wealth Management across the UK’.

He added: ‘Paul has navigated successfully significant geopolitical changes, challenges in the regulatory and market environments and has steered the group into a position of strength, from which it can continue to develop.’

Stockton, who will retire alongside his 60th birthday, said: ‘We have laid strong foundations to support the next phase of growth for the group.’

Stepping down: Paul Stockton has retired after 16 years with Rathbones

His replacement joins from derivatives firm Capstone Investment Advisors, where he has been president since January 2020.

Prior to this, Sorrell was chief financial officer and then president of FTSE 250-listed Man Group.

Bannister said Sorrell brings a ‘formidable leadership track record at the most senior level of the broader investment and asset management industry, working across complex global organisations’.

He added: ‘In an excellent field of potential candidates, his investment background and experience combined with his energy, ambition and a clarity of strategic thinking stood out to the board.’

Sorrell said he had a ‘great sense of responsibility to ensure Rathbones continues to succeed and deliver for our clients and, as a result, for our people and shareholders’.

The market response was muted, with Rathbones shares trading 0.3 per cent higher at 1,632p by late morning on Thursday.

Shares are up 9.3 per cent over the last 12 months and almost 27 per cent over the last five years.

Shore Capital analyst Vivek Raja wrote in a recent note that Rathbones shares continue to trade ‘at a historically depressed valuation’.

He added: ‘This reflects some reservation around when net flows will recover and the integration of Investec W&I, in our view.

‘If gross inflows continue to hold up, recovery in net flows will partially reflect moderation in gross outflows, which is largely a function of macro.

‘Uncertainty relating to IW&I should crystalise by end-H1F when client migration is scheduled to have completed. Meanwhile, RAT has extracted deal synergies ahead of schedule.’