Pimco to Replace Retiring President Jacobs With Two VeteransBy
CEO Emmanuel Roman names Shanahan and Strelow as co-COOs
Management shift is biggest since Roman took charge last year
Pacific Investment Management Co. named a pair of veteran executives as co-chief operating officers to replace retiring President Jay Jacobs on Tuesday, the biggest reorganization since Chief Executive Officer Emmanuel “Manny” Roman joined the money manager in November.
Robin Shanahan, 43, and Peter Strelow, 46, will report directly to Roman, according to a statement from Newport Beach, California-based Pimco. The duo will oversee operations, not money management, which will continue to be headed by Dan Ivascyn.
Jacobs, 46, presided over Pimco during a stressful period that included the
ouster of co-founder Bill Gross and a more than 25 percent plunge in assets that began to recover last year. He was promoted to president in 2014 by a committee that Gross led and will retire Sept. 30 after 19 years at the firm.
“As an executive helping to steer the firm through a particularly challenging period in our history, Jay showed remarkable strength, resilience and poise,” Roman and Ivascyn said in a note to Pimco colleagues, a copy of which was seen by Bloomberg.
Shanahan has been at Pimco for 10 years and is currently the firm’s global head of human resources. Strelow, who started at Pimco 15 years ago, is chief administrative officer and global head of funds.
Roman said in an interview last month he plans to increase the firm’s headcount by about 100 over the next year, building on Pimco’s strength as an actively managed fixed-income firm at a time lower-fee passive managers have been gaining market share.
Jacobs, who will continue to advise Pimco until at least September 2018, will join Georgetown University’s Center for Financial Markets and Policy in January as a senior fellow, according to the statement. He received a 2013 bonus of about $22 million, when he oversaw human resources, according to a 2014 article.
“I leave knowing that Pimco is in great hands and that its best days lie ahead,” Jacobs said in the statement.