Scor upends succession plan as Kessler steps down a year early

Scor has made big changes to its succession plan and promoted Laurent Rousseau as CEO instead of industry outsider Benoît Ribadeau-Dumas, on the back of news that Dennis Kessler will step down from the role a year earlier than planned. Mr Kessler, who will remain as chairman of the board, will now relinquish the CEO role at the end of his current term of office on 30 June for personal reasons. This marks a change from plans announced in December for Mr Kessler to step down as CEO in spring 2022. The plan was for Mr Ribadeau-Dumas, the French Prime Minister’s former chief of staff, to succeed Mr Kessler after first taking on the role of deputy chief exec from the beginning of this year. But the fact that Mr Ribadeau-Dumas won’t gain the experience of working alongside Mr Kessler has prompted Scor to instead appoint Mr Rousseau as the next CEO from the beginning of July. Mr Rousseau is currently deputy CEO of Scor Global P&C, chairman of Scor Europe and a member of the group’s executive committee. He was one of three candidates selected by Scor’s compensation and nomination committee as part of the succession planning conducted in 2019 and 2020, but was overlooked. Mr Rousseau will also be appointed as a director of the group. “Benoît Ribadeau-Dumas had been appointed deputy chief executive officer with effect from 1 January 2021, with a view to becoming chief executive officer following the general meeting in 2022. While recognising and commending his strong commitment and successful integration during his first few months at Scor, the board of directors has come to the conclusion that the conditions are not met for Benoît Ribadeau-Dumas, who had not worked in the insurance or reinsurance sector before joining the group, to take up the position of chief executive officer of Scor in June 2021,” said the reinsurer in statement. Mr Kessler added: “The succession announced in December 2020 by the board on the recommendation of the nomination committee, cannot take place as planned. I would like to thank Benoit Ribadeau-Dumas for all the effort he has made to integrate into the company and the sector. I have every confidence in Laurent Rousseau, a seasoned and recognised (re)insurance professional with whom I have worked for more than 11 years, to ensure Scor’s success and to guarantee its long-term development, with the twofold target of profitability and solvency.” Augustin de Romanet, lead independent director at Scor, thanked Mr Kessler for his time as CEO and Mr Ribadeau-Dumas for his brief spell at the firm. He said it is “with regret that the conditions are not met to appoint him as CEO on 1 July 2021”. But Mr De Romanet is confident that Mr Rousseau has the “qualities needed to succeed” in his new role. Mr Rousseau said: “I am honoured by the confidence the Scor board of directors has placed in me by choosing me as the next chief executive officer of the group. The entire executive committee and I are determined to actively pursue the growth of the company for whose operations we will now be responsible… Since 2002, the group has aimed to be a tier-one global reinsurer. That goal remains intact. We will meet these challenges with dynamism and enthusiasm, bringing our teams together to serve all our stakeholders.” The decision to separate Scor’s CEO and chairman roles is based on a recommendation from the firm’s nomination committee, and follows pressure for the positions to be held by different executives from various parties. Last year, activist investment group CIAM called for Mr Kessler to be removed as chairman after a hostile and unsuccessful takeover bid by Covéa. CIAM called Scor’s governance “dysfunctional”. In a draft resolution to other shareholders, it said: “Denis Kessler is a ubiquitous leader, without any opponent… He combines the chairman/CEO roles at SCOR. His ubiquitous presence on a low-tenured board appears to inhibit other directors from taking a legitimate stand against his omnipresent role.”

Scor upends succession plan as Kessler steps down a year early

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