El-Erian to Leave Pimco as Bond Market Stumbles
After more than ten years at one of the world’s largest asset managers, Pimco CEO Mohamed El-Erian is stepping down from his leadership role and leaving the firm in mid-March. However, he will remain on the International Executive Committee of Allianz and will advise the Board of Management of Allianz SE on global economic and policy issues.
Bill Gross, founder of Pimco, will continue to serve as the company’s chief investment officer. He notes that, “Mohamed has been a great leader, business builder, and thought leader for Pimco and our clients. Together, we have guided the firm and served our clients during a period of significant change in the global economy and financial markets. We are pleased that he will remain a part of the Allianz Group.” Pimco is a U.S.-based asset management subsidiary of Allianz.
While the announcement surprised investors, it appears the decision was well-known to Pimco as several promotions were also announced at the same time. The firm’s managing directors elected Douglas Hodge, managing director and currently chief operating officer, as the new chief executive officer. Jay Jacobs, managing director and currently global head of talent management, will become president.