Garrett-Cox will depart on 11 March and her responsibilities will be reassigned, according to a statement on the London Stock Exchange, as boardroom discussions deemed her a “surplus to requirements” at Alliance Trust Investments. Having joined Alliance Trust in 2007 as chief investment officer, she was appointed chief executive in 2008.
In October 2015 she was involved in a battle with activist shareholder Elliott Advisors and forced to step down from the board and relinquish her leadership of the group as a result.
Following Elliott’s campaign Alliance Trust pledged to improve performance and governance, and the group cut its exposure to fixed income, sold its remaining commercial property and disposed of its mineral rights portfolio, according to the firm.
Karin Forseke stepped down as chair of Alliance Trust last November, and was replaced by Lord Smith of Kelvin, as part of an effort to create an independent board. As part of an ongoing restructuing process due to pressure from major shareholders, the trust announced on 1 October that it would implement a number of significant changes in order to improve its performance.
“Alliance Trust is now moving swiftly to implement the changes announced last year which are designed to enhance shareholder returns,” said Smith. “This process is well underway and it is clear to us all that the role of chief executive of Alliance Trust Investments has changed significantly. I and the rest of the board wish Katherine every success in the future,” he added.
Garrett-Cox commented on her departure: “It has been an honour to have had the opportunity to represent and protect the long-term interests of so many shareholders and to have been a guardian of the trust’s historic purpose of investing for generations. I leave Alliance Trust Investments with a strong team who are already delivering improved investment returns and driving down costs.”
Garrett-Cox was paid £1.4m in 2015, with compensation for loss of office to be paid in line with Alliance Trust’s remuneration policy and her contract, the LSE statement said.
