The Men Who Run Resolution Ltd

What you need to know about the top executives of life insurer Resolution Ltd (LON: RSL).

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Management can make all the difference to a company’s success and thus its share price.

The best companies are those run by talented and experienced leaders with strong vested interests in the success of the business, held in check by a board with sound financial and business acumen. Some of the worst investments to hold are those run by executives collecting fat rewards as the underlying business goes to pot.

In this series, I’m assessing the boardrooms of companies within the FTSE 100. I hope to separate the management teams that are worth following from those that are not. Today I am looking at Resolution (LSE: RSL), the life assurance consolidator that merged Friends Provident and the life assurance businesses of AXA UK and BUPA to form Friends Life.

Here are the key directors:

Director Position
Sir Malcolm Williamson (non exec) Chairman
Andy Briggs Chief executive
Tim Tookey Finance director


A little history is required to understand Resolution’s board. The company was formed by insurance entrepreneur Clive Cowdery to acquire and restructure UK life assurance companies, and was run like a fund management vehicle with an external manager owned by Mr Cowdery. However this project-based strategy stalled and in March this year management was brought in house. All three key directors were appointed to their posts as part of this year’s restructuring.

Sir Malcolm Williamson is a former CEO of Standard Chartered and Visa International, and had served as chairman of Friends Provident prior to the restructuring. A career banker who started at Barclays, Sir Malcolm undertook a slew of financial sector directorships since his retirement from Visa in 2004.

Andy Briggs had been CEO of Friends Life since 2011, having previously been CEO of Scottish Widows and CEO of general insurance at Lloyds Banking. At Friends Life he has been stripping costs whilst diversifying into corporate pensions.

Tim Tookey was appointed finance director of Friends Life in 2012. A chartered accountant, he is a former finance director of Heath Lambert, Prudential UK and subsequently Lloyds Banking, serving briefly as its interim CEO in 2011/12.

External manager

Resolution’s board includes the two of the principals behind the former external manager that will cream off 10% of Friends Life’s profits once some hurdle conditions are met.

Clive Cowdery was highly successful with an earlier venture called Resolution, which consolidated closed ‘zombie’ life assurance assets. Resolution Ltd is a second venture whose shares have lost 25% since their IPO in December 2008. Mr Cowdery is now bidding for a US insurer in a separate business venture.

John Tiner was the CEO of the external manager. A former accountant responsible for Arthur Andersen’s worldwide financial services practice, he subsequently worked for the Financial Services Authority and was its CEO from 2003 to 2007.

In addition there are nine independent non execs, all with financial services backgrounds.

The CEO and FD are required to hold 300% and 250% respectively of base salary in shares, but these have largely been gifted to them on joining.

I analyse management teams from five different angles to help work out a verdict. Here’s my assessment:

1. Reputation. Management CVs and track record.
Very good.

 Score 4/5

2. Performance. Success at the company.
Very poor since flotation.

Score 1/5

3. Board Composition. Skills, experience, balance
Still contains vested interests.

 Score 2/5

4. Remuneration. Fairness of pay, link to performance.
Payout/potential payout to external managers controversial.

 Score 2/5

5. Directors’ Holdings, compared to their pay.
See above.

 Score 2/5

Overall, Resolution scores 11 out of 25, a poor result. The board has been ‘normalised’ so Resolution can maintain its listing, but it needs a cleaner break with the past to achieve a convincing change in governance.

I’ve collated all my FTSE 100 boardroom verdicts on this summary page.

Buffett’s favourite FTSE share

Legendary investor Warren Buffett has always looked for impressive management teams when picking stocks. His latest acquisition, Heinz, has long had a reputation for strong management. Indeed Mr Buffett praised its “excellent management” alongside its high quality products and continuous innovation.

So I think it’s important to tell you about the FTSE 100 company in which the billionaire stock-picker has a substantial stake. A special free report from The Motley Fool — “The One UK Share Warren Buffett Loves” — explains Mr Buffett’s purchase and investing logic in full.

And Mr Buffett, don’t forget, rarely invests outside his native United States, which to my mind makes this British blue chip — and its management — all the more attractive. So why not download the report today? It’s totally free and comes with no further obligation.

> Tony owns shares in Standard Chartered but no other shares mentioned in this article. The Motley Fool owns shares in Standard Chartered.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Investing Articles

While the US stock market booms, the FTSE 100 lags behind. Or does it?

In November, global stock markets had their best month in over three years. Meanwhile, the UK's Footsie keeps falling further…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

What should I buy for my Stocks and Shares ISA in 2024?

From 6 April 2024, UK adults qualify for a new Stocks and Shares ISA allowance of £20,000. But what assets…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Could this FTSE 100 stock be like buying Apple shares in 2009?

Investors who bought Apple shares after a 100% gain in 2009 have done pretty well for themselves. Could FTSE 100…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Small-Cap Shares

2024: a once-in-a-decade chance to build wealth with penny stocks?

A lot of penny stocks and small-cap shares have tanked over the last two years. And Edward Sheldon now sees…

Read more »

Businesswoman analyses profitability of working company with digital virtual screen
Investing Articles

3 reasons the Rolls-Royce share price can keep going higher

It might be the top-performing FTSE 100 stock of 2023, but Stephen Wright thinks the Rolls-Royce share price can go…

Read more »

2024 year number handwritten on a sandy beach at sunrise
Investing Articles

2 dirt cheap value stocks I’m buying

These two FTSE 350 value stocks have performed miserably in 2023. However, Andrew Mackie expects their fortunes to turn in…

Read more »

Investing Articles

Is the BT share price a golden opportunity?

Oliver Rodzianko can smell the opportunity with the BT share price down 75% since December 2015. Yet, he thinks there’s…

Read more »

Close-up of British bank notes
Investing Articles

My £3-a-day second income plan for 2024

Christopher Ruane sets out how he could try to build a growing second income in the coming year for just…

Read more »