Following a merger of equals in May, headcount
cuts have hit the C-suite at Janus Henderson, with more cost
A number of Janus Henderson Investors executives are
exiting the business all former Janus Capital Group
employees the company confirmed in an email.
Janus Hendersons chief operating and strategy officer,
deputy chief operating officer, chief risk officer, and chief
operating officer (Asia Pacific) are all leaving, while the
global head of fixed income has moved to a subsidiary.
On Tuesday, the investment group reported cost savings of
$57 million, its first results since the merger of Henderson
Global Investors and Janus Capital completed in May. The
company attributed the bulk of these savings to a reduced
combined headcount. It anticipates further savings of at
least $85 million by May 2018 and $110 million annually between
May 2017 and May 2020, according to the press statement.
[II Deep Dive: Henderson CFO Says Job Cuts Loom
in Janus Merger]
Jennifer McPeek, chief operating and strategy officer, is to
leave at the end of October to pursue personal
projects, while Deputy Chief Operating Officer Rich Tyson
departs the end of September. Neither executive will be
Janus Capitals former chief risk officer, David
Kowalski, exits the newly combined business after working for
Janus for 17 years. The corporation said it plans to fill that
Gigi Chan, former chief operating officer (Asia Pacific),
left the business at the end of last month.
Kumar Palghats brief tenure as global head of fixed
income has ended, but he will continue on at the company he
co-founded, Kapstream, which Janus acquired in 2015. A
spokeswoman said this was due to personal reasons,
citing the significant travel required between Sydney,
London, and Denver as a factor.
McPeek, Tyson, Kowalski, Palghat, and Chan did not
immediately respond to requests for comment via LinkedIn.
In an interview, CFO Roger Thompson told Institutional
Investor, we are well on track. Where there was overlap,
we have made those changes. In London and in Denver, those
changes have happened. From a client point of view, the changes
we have made are largely done. Thompson said further work
on operations and IT would happen over a period of
Andrew Formica, co-chief executive of Janus Henderson, said
the priorities for the ahead year would be building a strong
corporate culture for the newly merged business and speaking to
clients about investment returns.
We have made great start with the business. The
synergy benefits to shareholders are coming through faster than
we thought and the balance sheet is strong, Formica
continued. We have a hell of a lot more to do.
In todays results update, the company said assets
under management stood at $345 billion at the end of June, up 4
percent on the legacy companies total from the prior