British merchant banking group Close Brothers has announced that Adrian Sainsbury will step down from his position as group chief executive officer, with Mike Morgan appointed as his permanent replacement, subject to regulatory approval.

The company announced that Sainsbury made the decision to step down following a period of medical leave to focus on his health. The group confirmed he is recuperating well and is expected to make a full recovery.

Chairman Mike Biggs praised Sainsbury's contribution during his 11-year tenure with the group, saying: "During this time he has overseen a period of significant growth and development for the Group, successfully leading the organisation through a challenging period which includes Covid and heightened geopolitical uncertainty."

Morgan, who has served as group finance director for the past five years and has been performing the chief executive role on an interim basis in recent months, will take over permanently, pending regulatory approval.

Commenting on Morgan's appointment, Biggs said: "Mike brings deep knowledge of the organisation and his appointment will ensure continuity in the leadership of the Group and delivery of our strategy."

Sainsbury, who joined Close Brothers in 2013 and became group chief executive in 2020, expressed gratitude for his time leading the organisation: "It has been a privilege to lead the group as Chief Executive for the last four years. During my time at Close Brothers I have been deeply impressed by the enduring strength of our business model, and the dedication and expertise of our people."

Close Brothers, which employs approximately 4,000 people primarily in the UK and Ireland, provides lending, deposit taking, wealth management services and securities trading. The company is listed on the London Stock Exchange.

Details of Sainsbury's remuneration arrangements following his departure will be made available on the group's website, in accordance with Companies Act requirements.

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