Ian R. Stuart - Career History, Accomplishments, Leadership
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Transcript of Ian R. Stuart - Career History, Accomplishments, Leadership
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Career History
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Fortune 100 Business Unit CFO Roles Distribution -
Public Accounting Insurance Banking Healthcare/Insurance
1981 1991 1998 2000 2001 2004 2009
CFO Corp/ CFO CFO/Interim CEO
Private Invest Citi- of NASDAQ Co./
Bank Bank Capital CFO of start-up
Manager–progressed CFO - Travelers
to partner track Life & Annuity
1981-1991: Left UK in 1981 to join Price Waterhouse-Bermuda; transferred to Hartford,
CT 1985 – progressed to partner track (majority of clients were insurance companies).
1991-1998: Recruited to Travelers in 1991; promoted to CFO of Travelers Life &
Annuity in 1993. Acquired life, health, annuity/retirement savings and P&C exposure.
1999-2004: After Citigroup merger, was asked to move to New York. Assumed
Citibank Private Bank CFO role, then acquired corporate/trading desk and investment
banking exposure. In 2001, relocated to Dallas for CitiCapital CFO role.
2004-2009: Exited “non-core” CitiCapital in 2004. Elected to stay in Dallas; joined an
insurance start-up. Negotiated 2006 merger into a small NASDAQ healthcare
distribution intermediary. Promoted to Interim CEO 2007. Sold company in 2009.
Current: Augmenting job search with short-term consulting projects.
Credentials
Excellent track record of creating value – in a variety of scenarios.
Expertise:
Operational/P&L experience – partnering with business leaders to drive organic revenue growth (distribution channel expansion and adding new products), implementing pricing discipline, and improving cost structures.
Strategic/risk assessment – includes management of pricing, investment (credit, interest rate, liquidity), distribution/retention and expense risks.
M&A transaction execution; sourcing funding – some IPO experience.
Treasury and capital management – includes asset/liability duration analysis, a focus on “free cash flow”, and regulatory capital stress testing.
SEC Reporting – incl. SOX 302/906 certification of Form 10-K/10-Q filings (also have familiarity with operating in “private-equity like” environments).
Board of Director accountability and investor relations experience.
Managing large teams (both domestic and international) – and attracting/retaining/developing top-tier talent.
Strong insurance background; also banking and healthcare.
Strategic; risk-oriented; creative; hard-working; a team-player. 3
Creating Value - at Travelers Life & Annuity
Partnered to become a key team member – contributed to delivering a 10x increase in net income, to $496 million, over a 7-year period.
Compiled complex analysis to drive business decisions – disaggregation of earnings to facilitate comparison to pricing assumptions; channel profitability.
Directed/coordinated actuarial projects – pricing reviews; asset/liability duration analysis; regulatory capital stress testing; implementation of risk based capital.
Developed rating agency and equity analyst relationships.
Implemented a “controllable earnings” concept for each business unit/dept. 4
Directly contributed to these P&L drivers Provided oversight of:
$496M
Distribution
Tightening Channel Reinvestment
Expense of Pricing Expansion of prior year
Control/ Discipline earnings
Leverage Investment (tax penalty
Portfolio triggered if
Performance distributed)
$50M Improvement
1991 1998
Creating Value - at Citibank Private Bank
Partnered with business leaders to:
Improve the cost structure.
Pursue a new strategic direction – included liaison with Smith Barney to share platforms and cross-sell products.
Align compensation with strategic objectives – jointly led enhancement, and global rollout, of new banker/product specialist incentive compensation model.
Enhanced financial reporting and controls:
Improved the transparency of reported Citibank Private Bank results – clearly segregated earnings from client assets and earnings on capital/treasury.
Tightened balance sheet focus – and inter-company reconciliation procedures.
Upgraded the caliber of the Finance team:
Implemented a culture of providing pro-active business support.
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Net Income$319M
$270m
$212M
2000 2001 2002
Net Revenue$1,406M
$1,212M
$1,130M
2000 2001 2002
Customer Account Balances$153B
$140B
$116B
2000 2001 2002
Creating Value – at CitiCapital
Generated $50 million of annualized savings:
Negotiated 50bp cut in Treasury funding costs (compiled duration analysis to demonstrate prepayment activity).
Negotiated 15% reduction in administrative costs.
Partnered with business leaders to change from a volume focused culture to a profit driven business:
Implemented standardized reporting for 20+ asset classes.
Created risk based pricing metrics.
Undertook customer/dealer profitability analysis.
Developed vintage analysis (“good” vs. “bad” bank reporting) to demonstrate impact of strategic change.
Reorganized/upgraded the Finance team.
Strengthened accounting controls:
Created a dynamic loan loss allowance accounting model.
Coordinated SOX implementation, a ledger conversion, and a focus on balance sheet controls/reconciliations.
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Strategic challenges:
High cost structure –
multiple platforms/sites;
inefficient property tax
administration.
Limited cross-selling/
development of core
banking relationships.
Other business units
offering better returns/
utilization of Corporate’s
low-cost funding base.
2002 Pre-Tax Income
$145M
Savings 34%
66%
$1,295 Net Revenue
$27bn Ave. Portfolio
54bps Margin
Creating Value – at Access Plans
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Prior to concluding a turnaround with a 2009 sale transaction - -
4. Resolved complex El Paso TPA litigation matters
1. Averted a Liquidity Crisis
Sourced $6.3M (2007/2008)
Secure new debt $4.5M
restricted
Release deposits* $0.8M
Sell ACP Agency $1.0M
* Driven by new PME platform
Use of the $6.3M proceeds
Fund 2008 El Paso loss $2.0M
Acquire PME $0.9M
Debt repayment** $3.4M
* * Add'n $2.3M repaid from
available cash on hand
2. Grew 2008
Revenue 20%*
$35M
$28M
2007 2008
* Continuing operations only
o AHCP Insurance Agency
grew to #1 independent
distributor of individual
major medical insurance
o Advocay Program awarded
1st place - innovative design
(by Consumer Health Org.)
3. Cut Prior Year
EBITDA Loss by 90%*
2007 2008$(0.17)M
$(1.66)M
* Continuing operations only
o Growth in AHCP Agency
(lead/trip/advance program)
o Stabilize Discount Card
Program - roll-out new
products; lower cost/more
flexible PME platform
o Cut corporate overhead
Creating Value – Access Plans Stock Performance
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Challenged by a) high profile CEO death/disintermediation risk, b) losses
attributable to DOJ investigation, and c) declining cash. Sale transaction: Provided significant value for shareholders, and repayment of all debt.
Ensured all customer obligations met; provided a “home” for all distributors.
Offered most employees the opportunity for continued employment.
AUSA STOCK PRICE $2.35 (2) Today, turnaround has restored 87% of June 2006 stock value - if stock retained after 2Q09 sale
$1.50 (3) $0.87 (5)
$1.00 (1)
$0.21 (4)
6/30/06 3/31/07 8/31/07 3/31/09 9/30/11
Cash on hand $5.9M $3.7M $0.5M
1) During June 2006, public company agreed to merge with Peter Nauert's start-up and appoint him as Chairman and CEO.
June stock price was less than 20% of 2001 "high". Company name changed to Access Plans (NASDAQ symbol: AUSA).
2) Transaction closed January 2007; 235% stock price gain through March 2007 reflected Peter Nauert's prior track record.
3) Ian Stuart appointed Interim CEO (after 8/07 Nauert death and 2Q07 DOJ notification of 2004 market misconduct issue).
4) Stock price when AUSA sold - effective April 1, 2009, shareholders received 0.335 APNC shares for every share held.
5) Split adjusted stock price (APNC stock closed at $2.60 on 9/30/11).
Leadership - Framework For A Top-Tier Finance Team
Philosophical framework:
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Success = the right people, in the right place – and the right chemistry
Compile Timely, "Run the trains on time" - deliver timely/accurate
Accurate and reporting and credible communication of results
Relevant Data {and maintain a robust accounting control structure}
"Provide a superior dashboard" - apply analytical
Translate into acumen to proactively measure business
Meaningful performance, and ensure monthly metrics (KPI's
Information and KRI's etc.) align with strategic objectives
{managers respond to what they are measured on}
"Be a trusted lieutenant" - partner effectively to
Influence/Make provide valuable business insight and drive decision
Decisions making/change; act as a "financial conscience"
{i.e. be both a business unit partner and banker}
Leadership - Strategic and Competitor Perspectives
Strategic and competitor assessments typically include:
a) The external landscape/environment.
b) Internal financial strength/resource capacity.
c) How the organization is able to adapt and change.
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Strategic Options:
Organic growth/stand-alone.
Add-on acquisitions – to
diversify/accelerate growth?
Merger transaction – to
transform (high integration risk).
Sell – all/part of company. Why will the customer buy
from us??
Lowest price – generally a
low cost producer.
Leading product innovator –
with initiatives to sustain this
position.
Provide best customer
service – at a level that the
customer highly values.
Superior brand, or
distribution, or other form of
customer access.
Regulatory fiat – e.g. a
patent/license that cannot be
readily replicated. Strategy = Processes/milestones to get from Point A (today)
to Point B (strategic objective)
EXTERNAL INTERNAL
o Consumer/marketplace value o Capital strength/level of debt
added proposition leverage/capacity to invest
o Competitive landscape - "SWOT" o Amount of sustainable "free
o Pace of industry change cash flow" being generated
CULTURE - LEVEL OF
o Creativity and capacity for change
o Drive for continuous improvement
o Leadership team candor - and collaboration
o Effective communication - all stakeholders
Leadership - Business Drivers & Risk Perspectives
1. Pricing Risk: Adherence to risk adjusted pricing discipline and established underwriting standards; and adequately reserving for future obligations.
2. Liquidity Risk: Ensure sufficient cash resources – to fund operations, strategic investments, and adverse scenarios. Ideally, generate sustainable “free cash flow” {positive cash flow, after essential reinvestment and debt repayments}.
3. Sales/Market Conduct Risk: Appropriate products are sold, in the right manner, to suitable customers – and comply with applicable regulations.
4. Business Retention Risk: Generation of adequate levels of recurring revenue {typically less costly than generating revenue from new customers}.
5. Credit Risk: Investments do not become impaired (and, where applicable, collateral is effective); all receivables are collected in full.
6. Interest Rate Risk: Exposure to changes in fixed/variable interest rates.
7. Expense Risk: Cost structure is efficient – while also dedicating sufficient resource to ensure integrity of systems platforms and to provide for a level of customer service consistent with the company’s strategic objectives.
8. Protection Risk: Assets appropriately safeguarded; adequate levels of insurance protection purchased {and will be effective if/when needed}.
9. Capital Risk: Optimal navigation between regulatory capital requirements/ rating agency guidelines, debt leverage, and maximizing shareholder returns.
10.HR Risk: Attract, develop, retain top-tier talent; employee communication
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What Others Have to Say About Ian Stuart
“Ian possessed the financial leadership skills to successfully guide Access Plans through a liquidity crisis, a very difficult legal matter, and a transition in ownership that greatly benefited our shareholders. In each instance, Ian was patient, armed with the facts, and decisive.”
J. French Hill, Chairman/CEO of Delta Bank & Trust (and former Chairman of Access Plans)
“Based on my personal experience, I am sure you will find Ian to be a talented finance executive with outstanding analytical skills who is capable of addressing complex business issues, communicating effectively with a broad range of audiences, and who consistently adheres to a high level of integrity”
Michael A. Carpenter, CEO of Ally Financial (and former Chairman and CEO of Travelers Life & Annuity)
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The Family – and Recreational Interests
Clockwise from the top:
Kimberley, Torridon, Talisker
and Ian.
Lagavulin (our newest Golden).
Soccer – a ball in our garden.
One of Kimberley’s horses.
Gardening.
Additional information at personal web-site: www.careerhosting.com/ianstuart
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