Commodity King quits Macquarie
Nick O’Kane was paid more than JP Morgan boss Jamie Dimon and his own chief executive
A SUPERSTAR commodities trader at Macquarie is set to quit the firm this month after raking in more pay than JP Morgan boss Jamie Dimon and his own chief executive.
In a surprise announcement, the Australian investment bank said that Nick O’Kane would step down as head of its commodities and global markets (CGM) division on February 27.
O’Kane, who has worked for Macquarie for almost three decades, will ‘pursue opportunities outside the business’. He will be replaced by Simon Wright, who heads up the CGM financial markets arm.
News of his departure came as the company – which has been called the ‘Vampire Kangaroo’ – warned its profits would be lower than previously expected as dealmaking slumped to its lowest level in a decade.
O’Kane is widely credited for turning Macquarie’s obscure commodities and global markets division into a powerhouse after he placed a seemingly modest bet on US energy trading after taking charge of the operation in 2019.
The timing of the move meant Macquarie saw its profits boom after the Russian invasion of Ukraine and extreme weather conditions in some parts of the world sparked massive swings in global energy prices.
Prior to taking charge of the division, O’Kane also helped orchestrate Macmeant quarie’s purchase of small Californian energy group Cook Inlet in 2005, which since then has grown into a global player that reported a £3.1 bn profit last year. Its success
O’Kane became one of the best-paid executives in Australia, taking home £30 m last year – more than the pay packets of Dimon and Goldman Sachs boss David Solomon. His bumper salary even outstripped Macquarie’s chief executive Shemara Wikramanayake ( pictured), who that same year was paid £17 m.
The announcement of O’Kane’s exit came as Macquarie reported that its year- to - date profits for the year to March 2024 were ‘substantially down’ on the same period a year ago and that its annual performance would be down sharply on 2023 as deal opportunities dried up amid economic uncertainty.
Despite this, Wikramanayake said the company remained ‘ wellpositioned to deliver superior performance in the medium term ’. Macquarie’s shares dropped 1 pc on Australian markets following the results.
The bleak earnings will pile further pressure on Macquarie, which has already faced severe criticism for its stewardship of major UK water firms. The bank’s ownership of several UK water companies, including Thames Water, which it bought in 2006 and sold in 2017, has been lambasted.
Macquarie loaded the utility groups with debt and extracted billions in dividends but it failed to invest to upgrade the water network, which resulted in frequent leaks and sewage spills.
Concerns were also raised last year when Macquarie secured an 80 pc stake in National Gas, Britain’s gas infrastructure network which looks after thousands of miles of pipes that supply homes.
The Australian firm has its hands on swathes of key UK infrastructure, including a majority stake in Southern Water.