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The UK’s biggest wealth manager St James’s Place is ditching its posh annual staff gatherings in London as well as a spring sports break at the luxury Gleneagles hotel in Scotland as it seeks to overhaul its corporate image.
SJP will hold its annual company meeting virtually instead of at the O2 arena in January, according to people familiar with its plans.
The London get-togethers, organized for SJP’s staff and 5,000 self-employed financial advisers, have become emblematic of the firm’s lavish, sales-oriented corporate culture.
The top performing advisors would parade on stage to the tumultuous cheers of their peers. Guest speakers included world stars such as Bill Clinton and David Beckham, and a glittering dinner was held in the evening. One person who attended previously called it a “luxurious” event.
Although the London meeting has been toned down from 2020 and perks such as cruises to reward top-selling advisers have been scrapped, a person close to the process said halting the event altogether would help repair SJP’s reputation, which has become tainted by perceptions of excessive rewards for aggressive sales tactics.
The person added that managers are making plans to give advisers a chance to meet at alternative events such as smaller local dinners around the country.
SJP said: “We have been developing the way we work with the (financial adviser) partnership over a number of years as part of our ongoing efforts to update and improve the way we do business.
“As part of that evolution, our annual company meeting will take on a new format in 2025. The focus will be on smaller gatherings that allow us to come together as a community to collaborate, recognize outstanding achievements and learn together.”
SJP has more than £184bn of assets under management and has just re-entered the FTSE 100 after a turbulent period.
It has been under scrutiny for a number of years because of its billing structure. According to critics inside and outside the company, her fees were unclear and expensive. It announced last year that it would review its fees and remove exit fees for certain products from the middle of next year.
It also set aside £426 million to compensate potential buyers over historical record-keeping problems. For many clients, there is no evidence that they received the regular advice they were paying for.
Chief executive Mark FitzPatrick, who joined the company last year from insurer Prudential, is trying to cut costs, improve SJP’s image and boost profitability, hoping to double underlying cash profits by 2030.
FitzPatrick said in July that it aimed to cut operating costs by £100m a year by 2027 and wanted to achieve cumulative savings of around £500m by 2030, half of which would be reinvested in the company.
Earlier this month, the company told its 3,200 employees it would cut 500 jobs, launching a consultation process to determine which roles would go. Because they are self-employed, financial advisors will not be affected.
