26-Mar-14
Mike Kavanagh , the favorites to succeed Jamie Dimon, CEO of JPMorgan Chase is one , has withdrawn from the Bank of the United States as co-president at the Carlyle , the private equity investor .
Mr. Kavanagh is the third former head of JPMorgan's investment bank to leave the lighter regulation of hedge funds and private equity investments, less examination, usually better-paying world of life.
Three people familiar with his decision - a few weeks later conveyed to Damon talks with Carlyle this weekend - the difference between these three banks and other financial sectors have played a role. One said the industry is concerned that even the biggest banks cannot compete executive’s remuneration.
Mr. Kavanagh won the JP Morgan Chase, the largest bank in the United States approximately $ 17 million, while the top three executives Carlyle shared $ 750 million between them.
Dimon said in a memo to staff, the move was a “regrettable loss." It deprives one of his most trusted lieutenants, and follows the proposed senior class president of JP Morgan Chase on the following issues leaving the leadership of the string.
JES Staley and Bill Winters each ran investment bank JP Morgan Chase after the financial crisis, before leaving for the alternative asset management company. After leaving the other top JP Morgan has included Charlie Scharf, who now runs a visa, and Ina Drew, who left the “London Whale" trading scandal, chief investment office.
Mr. Kavanagh, aged 48, is to become co- president and co-chief operating officer at private equity group, and Glenn Youngkin, 19 -year veteran and current Carlyle COO shared two roles.
The Carlyle Group has also been appointed as the new executives in its co-founder Daniel de ANIELLO, William Conway and David Rubenstein sit.
Mr. Kavanagh became co-head of investment bank JP Morgan for over 20 years, serving in various roles in Damon, including restrictions six years, served as chief financial officer after. Daniel Pinto, the other co-head, will become the sole chief executive of corporate and investment banking.
Starting strengthen Matt Zames, co-chief operating officer of the hand , in the final race to replace Damon , although 58 -year-old incumbent told colleagues that he intends to stay for another five years.
Other possible successors, according to insiders, including Mary Erdoes, CEO of the bank's asset management division, Marianne Lake, Chief Financial Officer, and Doug Petno, head of commercial banking. Gordon Smith, 55, who runs the consumer business, said to be a contender, if Damon to leave suddenly more than he had said.
Dimon said he believes the current form creates a JP Morgan Chase Bank before the Chase merger “since 1993," worked with Mr. Kavanagh, a decade.
Mr. Kavanagh in a separate memo, said: “There is nothing more behind it, I decided to take a different turn in my career, although I 'm looking forward to a new chapter, and I can tell you that I did not think it was so. Difficult to leave. "
In general, private equity firms prefer to recruit from the inside. However, this is the second time in recent months, Carlyle has reached out to fill senior positions. A few months ago, Carlyle hired Kewsong Lee from Warburg Pincus served as deputy chief investment officer .
Appointment of Mr. Kavanagh 's " will help ensure continuous innovation and development of Carlyle another quarter of a century " , according to reports from Mr. Rubenstein and Mr. Conway, who are joint statement in the mid- 1960s .
Mr. Kavanagh’s appointment Carlisle, he helped take public in 2012, listed private equity firms undoubtedly going through a transition period. Founder still retains all powers, as the offer memorandum accompanying its listed clearly. But they also need to prove to investors that they are becoming more institutionalized, creating many new jobs.
Mr. Kavanagh will be based in New York, away from the Carlyle headquarters in Washington. It is unclear how he and Mr. Youngkin divide their duties, co-president of the company, but both are expected to contribute to the strategy and new product development.
Mr. Youngkin, aged 47, who has extensive experience in investment and finance, has long been considered a rising star in a potential successor to Carlisle and his promotion has the spotlight on him, the three founders finally take a step back in some unspecified time in the future.
However, "This announcement should be seen as a leader in the planning, rather than inherited," said a person with knowledge of Carlyle.
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