Offering board membership to a departing CEO can negatively impact corporate performance, according to a report released by The Conference Board, an independent business membership and research association in New York City. The report, Retaining Former CEOs on the Board, studied 358 CEO turnovers that happened for reasons other than mergers, reorganizations, etc., in S&P 1500 firms. Findings indicate that companies that retained former CEOs on boards have relatively lower stock returns compared with those in which CEOs continued as chief executives.
According to a recent survey conducted by KPMG LLP, the audit, tax and advisory firm, 43% of private equity industry executives surveyed believe that meeting the demands of new financial regulatory standards will be a time-consuming, difficult process, while 47% believe it will be "mildly intrusive." Only 10% consider it a non-issue. "Greater oversight will likely require additional changes at many PE firms," said Shawn Hessing, national lead partner for KPMG's U.S. private equity group.
Events
The 20th Annual Private Banker International Wealth Summit, in Singapore, October 20 - 21, will help wealth managers revisit their business models to take advantage of emerging opportunities as well as equip themselves with the tools and knowledge for a sustainable bottom line. For information contact Christina Yeo at +65 6383 4688 or e-mail [email protected].
The 2010 Investment Company Directors Conference, October 25 - 27 in Chicago offers insights into the new regulatory requirements affecting fund directors and their boards. Speakers include Michael J. Mauboussin, chief investment strategist, Legg Mason Capital Management; Jennifer Johnson Bolt, executive vice president and COO, Franklin Resources Inc.; and Andrew J. Donohue, director, Division of Investment Management, U.S. Securities and Exchange Commission. For information contact ICI at 202-326-5800 or go to www.ici.org.
The Association for Financial Professionals will host its 2010 AFP Annual Conference November 7 - 10 in San Antonio, pulling together CFOs, treasurers, regulators, economists and senior bankers for discussions on global economic recovery, financial regulatory reform and corporate finance strategies and innovations. Speakers include Condoleeza Rice; Richard Fisher, head of the Dallas Federal Reserve; Jami Miscik, vice chairman and president, Kissinger Associates and former global head of sovereign risk at Lehman Brothers; and Alan S. Blinder, PhD, vice chairman, Promontory Interfinancial Network and former vice chairman, Federal Reserve. For information go to www.afponline.org/annual.
On The Move
Stroock & Stroock & Lavan LLP, with offices in New York, Los Angeles and Miami, added Burton M. Leibert as a partner in the firm's Investment Management Practice Group in New York. Leibert was previously a partner in the Asset Management Group of Willkie Farr & Gallagher LLP, New York. Prior to that he served at the U.S. Securities and Exchange Commission in various positions and as counsel for ERISA Regulation and Fiduciary Responsibility at the U.S. Department of Labor.
Jocelyn Margolin Borowsky joined the Estates and Asset Planning Practice Group of Duane Morris LLP, as a partner in the law firm's Philadelphia office. Borowsky, whose clients include high-net-worth families, closely-held family businesses, corporate executives and charitable organizations, was previously at Richards Layton & Finger in Wilmington, Del. Duane Morris has more than 700 attorneys in 24 offices throughout the U.S.
Lord, Abbett & Co. LLC in Jersey City, N.J., appointed five new partners, bringing the total number of Lord Abbett partners to 60. Newly appointed were: David J. Linsen, portfolio manager; Thomas B. Maher, portfolio manager; Jonathan M. Morgan, director of institutional services; Lawrence B. Stoller, deputy general counsel; and Stacy P. Allen, chief administrative officer. One of the nation's oldest money management firms, Lord Abbett has $102 billion under management.
Richard Bernstein Advisors LLC in New York City has been picked to run a new global stock mutual fund for Boston-based Eaton Vance Corp. Called the Richard Multi-Market Equity Strategy, the fund is named after Richard Bernstein, who was chief investment strategist at Merrill Lynch & Co., NY, until leaving in 2009 to start his own advisory firm.
Neuberger Berman Group LLC announced the appointment of Keith A. Rhodus as a wealth advisor and vice president in the firm's Dallas office, which manages over $1 billion in assets for high-net-worth families, foundations and institutions. Rhodus previously spent four years as a private wealth advisor for Merrill Lynch and also worked as a financial consultant for Smith Barney. Established in 1939, Neuberger Berman manages about $169 billion for individuals and institutions.
First Western Trust Bank appointed wealth management veteran Harold Pine to serve on the firm's portfolio management team in Cherry Hills, Colo. Pine previously was CIO for Jess S. Morgan Company, a Los Angeles-based investment management firm, and before that, held investment management executive positions with U.S. Bancorp, Wells Fargo and UBS. First Western Trust Bank, headquartered in Denver with offices in Colorado, Arizona, and California, has more than $4 billion under management.