Link share price buoyed by appointment of new CEO

The Link share price is on watch today following news that the company has appointed a new CEO.

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The Link Administration Holdings Ltd (ASX: LNK) share price is today on watch following news that the company has decided on a new CEO. The share price is currently trading up 3.27% to $4.26 on the news

What does Link do?

Many of our readers may be familiar with the name Link Administration, as the company provides investor services to many prominent companies on the ASX. 

Link Group connects millions of people with their assets including equities, pension and superannuation, investments, property and other financial assets. This is done by partnering with thousands of financial market participants to deliver services, solutions and technology platforms. Link aims to enhance the user experience and make scaled administration simple.

New CEO

Link has today announced that Vivek Bhatia is set to succeed John McMurtrie as Link Group Managing Director and CEO. Mr McMurtrie, will retire as managing director of Link Group in early 2021, after almost 2 decades of service to the company.

The Link Group Board determined Mr Bhatia, currently QBE Insurance Group Ltd (ASX: QBE) CEO, was the standout candidate from an extensive international executive search as part of a planned succession process.

In order to facilitate a smooth transition Mr McMurtrie will work with Mr Bhatia over the coming months.

Who is Vivek Bhatia?

Vivek Bhatia is an experienced chief executive, having led a number of businesses during his 22-year career in financial services, government and management consulting. He has been CEO of QBE since 2018. In this role, he delivered a significant improvement in financial results, customer, broker and partner satisfaction scores and employee engagement.

For his services Mr Bhatia will receive payment of $1.3 million per year.

What now for Link?

The company has been hard hit by COVID-19, with the Link share price down by 27% so far this year. Furthermore, in worrying news for shareholders recent reports suggest the market wants to get rid of the current CHESS ownership system. This will have a significant impact on share registry companies such as Link and Computershare Limited (ASX:CPU), which derive business through this system. 

Mr McMurtrie will present the full year results for Link on 27 August.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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