CLSA has reportedly lost over 10 percent of its workforce this year as its state-owned parent Citic Securities tightens controls and executive pay.
CLSA’s headcount has dropped 200 this year alone to reach 1,730 as of July, according to a «Bloomberg» report citing unnamed sources.
The latest outflows include the exit of former deputy chief executive John Sun and chief legal and compliance officer Jaclyn Jhin, the report added. Sun left last week after being named to the role last year and Jhin left last month.
This follows the reported exit of CLSA CEO Rick Gould in August this year, 16 months after being appointed.
Tightened Pay
Last year, Citic chairman Zhang Youjun blasted the firm’s returns during a Beijing-based gathering of CLSA senior management and some executives subsequently left, including former CEO Jonathan Slone.
In June, the firm requested a dozen senior CLSA executives to take a 10 percent salary cut, saying it would align pay with mainland colleagues, but withdrew after several refused to sign the new contract, the report added.
Tightened Controls
Citic has also been tightening controls, removing indecent decision making and demand key managers to directly report to Beijing.
Citic has also brought in at least six executives from the mainland to replace incumbent ones from CLSA since the shakeup to oversee various businesses and operations including equity, fixed income, risk and finance.
In April, ex-Vanguard CEO of Asia Charles Lin was named as CLSA’s vice chairman and took on many of the former CEO’s responsibilities.
