GMP Capital Trust today announced that Tom Budd, president and vice chairman, head of investment banking and one of the co-founders of GMP Securities, will be retiring effective June 13.
Budd has entered into a consultancy service agreement and will continue to support GMP Securities in an advisory capacity until at least mid 2009 to ensure a smooth transition and to continue to promote the interest of GMP.
“GMP has benefited from Tom’s valued leadership and vision over the last 13 years and he has been instrumental in shaping our position as a leading independent Canadian investment dealer. While we will miss Tom’s leadership role at GMP, we are pleased to continue to work with him in this new advisory capacity”, said Kevin Sullivan, CEO.
Budd joined GMP in 1996 and was instrumental in developing the firm’s Calgary office.
Harris Fricker, vice chairman, investment banking GMP Securities, will assume the role of head of investment banking in addition to his existing role as co-chairman of GMP Europe.
In addition to retiring his executive position with GMP and its affiliates, Budd will no longer be standing for election as a trustee at today’s annual general meeting. The fund has decided to nominate Eugene McBurney to stand for election as a board member of GMP Capital Trust. McBurney is co-founder of GMP, and is currently chairman of the fund and co-chairman of GMP Europe.
Separately, GMP Capital Trust released its financial results for the three months ended March 31.
Net income was $21 million in first quarter compared with record net income of $44.5 million a year ago.
Revenue was $94.1 million for quarter, representing a decrease of 18% compared with first quarter 2007, largely due to lower returns in principal activities, which, in first quarter 2007, included realized gains of $12.8 million from the sale of its holding of shares in Montreal Exchange Inc. as well as weaker equity sales and trading results in GMP’s capital markets business.
Excluding the prior year gains from the sale of the shares of Montreal Exchange Inc, revenue and net income decreased 8% and 36%, respectively, compared with first quarter 2007.
“Market conditions during first quarter 2008 were some of the worst I have seen in my 23 years in the industry. While we have certainly seen downturns in the past, none have had the same impact on the financial services industry like this current turbulence in the credit market. Notwithstanding the effects of the downturn, our ROE was 29% this quarter, which I believe is exceptional given the current environment” said Kevin Sullivan, CEO.
GMP Capital announces executive management transition
- By: IE Staff
- May 9, 2008 December 14, 2017
- 07:45