More Than You Ever Wanted to Know About CFOs
Who are those mysterious folks who occupy the top finance positions in corporate America? This is the question that keeps us up late at night. Not. CFO Magazine, however, does actually give a hoot--so much so that they commissioned recruiting firm Spencer Stuart to do a study of the Fortune 1000 CFOs. We only found a couple of items of interest--which business schools turned out the most CFOs (Harvard) and the percentage of CFO positions occupied by women (hint: it’s in the single digits)--but at least there are lots of pretty graphs.
Profile of the CFO [CFO Magazine]
Stansky: I Wasn’t Fired. Seriously, You Gotta Believe Me
After nine long years, Robert Stansky is admitting defeat and packing it in as head of Fidelity’s $52 billion (down from a peak of $110 billion) Magellan fund. Despite the fact that the fund has had average annual returns of negative 2.85% over the past 5 years and failed to keep up with its benchmark S&P 500 index for the past three years, Stansky insists he’s leaving of his own volition: “I feel I gave it my best shot,” Mr. Stansky said. “Was I frustrated that the numbers were not better? Sure. But if I were going to be forced out I assume it would have been a while ago.” Taking the reins will be Harry Lange, 53, who has performed significantly better at the helm of Fidelity’s $7.1 billion Capital Appreciation Fund for the last nine years.
Turnover at Top Fund of Fidelity [NY Times]
Stansky Leaving Lagging Magellan [Boston Globe]
Paper Trail of $100 Million Payout for CQS’ Hintze
It looks like convert arb kingpin Michael Hintze may have pulled as much as $100 million off the table last year as assets under management at his hedge fund CQS Management hit $5 billion. Though it’s unclear how much he paid to his traders and how much he kept for himself, there is a paper trail of $107 million being transferred from CQS to a Cayman Islands company owned by Hintze. This is also good news for the Conservative party, as Hintze is one of the Tories’ twenty biggest contributors.
Hedge Fund Boss’ Pay packet [Evening Standard (UK)]
Banking Big Shots Get Ready to Buy Toys, Show Off
According to the Securities Industry Association, bonuses this year are expected to rise 2.4% to $21.2 billion, the fourth best year on record. And while plenty of this payout will go into savings accounts and down payments, there are plenty of over-grown frat boys out there just looking for an ostentatious toy that screams “I am rich, shallow man compensating for my declining virility!” to the world. For those who can’t shell out the $200,000 it costs to pick up a Lamborghini Gallardo, even the most junior trader can afford the $1,750 a day rental charge, right?
Between donations to Unicef and the Red Cross, others will find time to travel:
There’s someone on Wall Street that’s taking 20 of his closest buddies for his bachelor party, renting a yacht, cruising in the Caribbean and ending up in Sandy Lane in Barbados on the golf course,’’ says Tatiana Byron, president of New York event planner 4PM Events. The cost: at least $200,000.
Money well spent, for sure.
Bonuses on Wall Street Spur Sales [Bloomberg]
Morgan Stanley Upping “Gardening Leave” Ante
Acknowledging that prestige alone is no longer enough to retain employees, Morgan Stanley has opted to insert “gardening leave” clauses into several top managers’ new contracts. Under the new provisions, managing directors will have to sit on the sidelines for three months while members of the management committee will have six months to hone their golf game before getting a new logo on their business card. And if the senior folk refuse to sign? They lose the stock portions of their bonuses--which, as we all know, usually represents half of all their comp or more. Sucks for them.
MS Stars Must Sign Anti-Poaching Contracts [NY Times]
