Julius Baer saw the pace of its asset-gathering slow to the weakest in three years and its long-time CEO defected to a Swiss rival. finews.asia asks Jimmy Lee, the Swiss bank's Asia head, what’s next.
By Shruti Advani, Guest Contributor finews.asia
The past year has been decidedly mixed for Julius Baer: it lost high-flying CEO Boris Collardi to rival Pictet nearly nine months ago, and it also ratcheted up $403 billion in assets so far this year, albeit growing at the weakest pace in three years. But the Swiss-based bank’s top people in its various regions may be better off now than they were during Collardi’s reign, Jimmy Lee (pictured above) told finews.asia in an interview.
«Julius Baer has now empowered management teams to function like CEOs with very empowered regional heads,» Lee, head of Asia and a member of the bank’s top management, said. «Provided you have the right talent, this is a more sustainable model over the long run.»
High on Job Wish Lists
The 56-year-old Singaporean banker, known for being «dependable and likable» was widely viewed as vulnerable to raids of talented bankers by his former boss-cum-friend, Collardi (the two have known each other since the 1990s).
«Everyone is vulnerable but I always assume people are smart enough to make their own choices,» he says with resolute optimism. His tone is justified, according to a headhunter who is not mandated to work with the bank: «There is no doubt that headcount is net positive at Julius Baer, the bank is high on most candidates’ wish list.»
Relaxed and Joking
Collardi’s departure hit Julius Baer just as Lee was preparing to welcome dozens of VIP clients and potential ones to the Formula E in Hong Kong Kong, which the bank sponsors. In between taking client calls, he entertained his team and hosted a group of Swiss-based journalists.
«Jimmy didn’t behave as if anything had changed the first time he came to Hong Kong after Boris’ departure», says one Hong Kong-based employee at the bank. «He took the team for a night out, he was relaxed and joking.»
Temporary Respite?
His optimism may well be justified: The key bankers at Julius Baer in Asia remain largely in place, even after Collardi plugged into Pictet’s platform and made his maiden visit to the region.
Lee has had to grapple with several departures from its external asset manager business and more recently, from its Singapore team, but the regional leadership and market-facing bankers at Julius Baer have remained stable.
The bank's senior management in Asia includes Angela Bow, who runs Julius Baer’s emerging Asia arm; Ivan Guidi and Christian Capelli, also executives devoted to emerging markets in the region; or Pamela Phua, who runs the bank’s business with intermediaries in China.
Is this a temporary respite? Collardi has stated that he would not make any hurried changes to the 213-year-old bank Pictet, instead he would spend his first 100 days meeting bankers and clients around the world, in an effort to understand its culture.
Splashy Hiring?
With that time coming to an end, it is anyone’s guess how many senior managers will be lured away, empowered though they may be. «Of course one worries about losing good people but it is part and parcel of this business», Lee says, a father of five who worked his way up from relatively humble beginnings.
He must draw considerable comfort from Julius Baer’s asset base in Asia – several times that of Pictet’s – that allows the bank to be a generous employer. A Hong Kong-based headhunter concurs, but questions the cost of this strategy. «It is widely assumed that Julius Baer pays a premium to market for candidates,» he says.
Lower Pay
Lee counters that Julius Baer’s payments practices are in line with the wider industry, and argues that every bank looks at closely at costs. «If people say Julius Baer is paying a 30 percent premium to market, there are banks that pay a 50 percent premium when they hire» he says. «In fact we have had candidates join us at lower pay so we certainly do not pay a 30 percent premium across all new hires.»
Click here to read the second installment of finews.asia's exclusive interview with Julius Baer's Jimmy Lee
