Employees don’t leave companies, they leave bosses — Anonymous
Fall recruiting is in full swing and chief investment officers are the belles of the balls. Johara Farhadieh, Kathleen Jacobs, and Nicole Mussico are moving on, Rosalind Hewsenian and Collette Chilton will soon take their bows, and Mark Baumgartner (a nod to the Misters) just picked a new partner. So many dance cards yet to fill.
As recruiters, we should be delighted, but for employers there’s a downside: turnover affects investment performance.
It takes time for CIOs to build rapport with boards and colleagues, articulate an investment philosophy, and roll out a diversified portfolio.
Only about a third of the CIOs in our FY2022 endowment investment report logged a decade or more tenure, but those are mostly the ones on top.
To repeat a well-worn trope, it takes years to fully implement a multi-asset, multi-generational investment strategy and altering course mid-stream – a new investment chair or a change in CIOs – can sap performance for a decade.
Superior returns start with well-run boards and smooth succession planning. Yale, Brown, Notre Dame did it right. Best practices suggest others should follow.
Institutional Investor Insights In3, Nov 8-9
I’ll be in New York Nov 8-10 for a BlackRock institutional investor conference. Speakers, content, contacts, what’s not to like? Should you plan to attend, stop by and say hello.
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