Hargreaves is planning to step down following November’s AGM with chief operating officer Ian Gorham set to take on the role.
Hargreaves co-founded the firm with Stephen Lansdown in 1981. Hargreaves Lansdown floated in May 2007 and currently has a market cap of approximately £1.75bn.
He says: “At the end of the day I am 63 years old and if you saw the Times richlist yesterday it’s fair to say that I am not as hungry as I once was. Over the last five or six years I’ve known that as I get older I would need to ensure that the business is run in perpetuity as we’d rather that was the case than if it was sold, hence floating the business in 2007.
“I now have a raft of younger people who not only can run the business but they do run business and I feel their hunger is greater and I am going to give them a chance.”
Hargreaves says he is going to remain an executive director and says he has no plans to retire.
Gorham joined Hargreaves Lansdown in September 2009 as chief operating officer and Hargreaves says he has shown everyone that he is the ideal person to take on the role. Gorham was named deputy CEO with immediate effect.
Hargreaves says: “He has had an interesting career prior to Hargreaves Lansdown having built a financial services practice for Deloitte and then did the same for Grant Thornton. He wanted a new challenge and we knew him for a number of years and he will take over at the end of the year. We’ve worked together for eight months and I think he is the right man to come to the fore.”