22:32 28Jul2009 RTRS-UPDATE 2-Former Lehman Asia CEO to leave Nomura board
*Only ex-Lehman member on Nomura mgt group to step down
*To stay on as 'senior adviser'
(Adds comments from former Lehman staffer, analyst)
By Michael Flaherty
HONG KONG, July 28 (Reuters) - The former Asia Pacific CEO for Lehman Brothers will step down from his chairman role at Nomura Holdings <8604.t>, according to a memo obtained by Reuters on Tuesday, dealing a potential blow to morale among ex-Lehman staff now at the Japanese brokerage.
Jasjit Bhattal was the only ex-Lehman member on Nomura's 14-seat management group for the global wholesale, or investment banking, business. He was also the only ex-Lehman person on the Asia executive management committee, and one of two ex-Lehman executives appointed as a senior managing director. Nomura bought Lehman's Asia franchise late last year.
A Nomura spokesman was not immediately available for a comment. The memo says he will leave the post at the end of the year and stay on as a senior adviser, but does not specify the exact nature of the advisory role.
Bhattal has been instrumental in bringing together Lehman's Asia and Japan businesses with those of Nomura, according to a senior former Lehman staffer also now at Nomura and who has worked with Bhattal.
"He was the consummate professional and an absolute A-plus individual and manager," said the staffer. "Morale has absolutely nothing to do with this," he said, adding that he was not sure why Bhattal was stepping down. The staffer was not authorized to speak publicly on Bhattal's move.
A DIFFICULT MERGER
While the Japanese bank has seen some success from Lehman's purchase, the deal has also given the bank some headaches. The financial markets plunged further after the deal, adding tension to an already difficult merger. [ID:nHKG265083]
Lehman bankers, used to heavy risk-taking at the New York-based brokerage, were frustrated with Nomura's conservative, bureaucratic operating environment. Nomura bankers, meanwhile, were wary of Lehman's high-risk, highly paid staff.
"Cultural differences between the firms cannot be under-emphasized," said Brad Hintz, an analyst at Sanford C Bernstein in New York and a former chief financial officer at Lehman Brothers.
Despite some being thankful for Nomura's rescue of the Lehman franchise after the bank collapsed last fall, a steady stream of legacy Lehman bankers left Nomura earlier this year. Some were also laid off amid the financial crisis.
A Nomura source could not confirm Bhattal's departure, but told Reuters that he expected more former-Lehman bankers to leave come Sept. 1, when their full bonus payouts come due. The source was not authorized to speak publicly about the matter.
To keep Lehman bankers from leaving, Nomura offered many one- to two-year guarantees that they would be paid their full 2007, bull market compensation. Seventy percent of that first-year bonus was paid in April, with the rest coming on Sept. 1.
The guarantees did help secure Lehman bankers, but came at a large financial cost to Nomura.
In addition, the effectiveness of the guarantees may have worn off lately as financial markets' conditions have improved. Some banks were starting to consider hiring staff after shedding thousands of jobs during the financial crisis.
"I would put something like (Bhattal's move) down to a recovery in the markets," Hintz said, adding, "We are actually beginning to see bids being made in the market for talent, in anticipation of an economic recovery."
Nomura bought Lehman's Europe and Middle Eastern divisions last year as well, just after the bank collapsed.
"Among his many notable achievements, he will also be long remembered as one of the key architects in the creation of the new Nomura," said Takumi Shibata, deputy president and COO of Nomura.
Shibata, a veteran Nomura banker, was a lead advocate for the Lehman purchase.
(Reporting by Michael Flaherty, additional reporting by Elinor Comlay in New York; Editing by Rupert Winchester and Maureen Bavdek)
((michael.flaherty@reuters.com; +852 2843 6540; For a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: NOMURA BHATALL/
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Tuesday, 28 July 2009 22:32:26RTRS [nHKG214165] {EN}ENDS
*Only ex-Lehman member on Nomura mgt group to step down
*To stay on as 'senior adviser'
(Adds comments from former Lehman staffer, analyst)
By Michael Flaherty
HONG KONG, July 28 (Reuters) - The former Asia Pacific CEO for Lehman Brothers will step down from his chairman role at Nomura Holdings <8604.t>, according to a memo obtained by Reuters on Tuesday, dealing a potential blow to morale among ex-Lehman staff now at the Japanese brokerage.
Jasjit Bhattal was the only ex-Lehman member on Nomura's 14-seat management group for the global wholesale, or investment banking, business. He was also the only ex-Lehman person on the Asia executive management committee, and one of two ex-Lehman executives appointed as a senior managing director. Nomura bought Lehman's Asia franchise late last year.
A Nomura spokesman was not immediately available for a comment. The memo says he will leave the post at the end of the year and stay on as a senior adviser, but does not specify the exact nature of the advisory role.
Bhattal has been instrumental in bringing together Lehman's Asia and Japan businesses with those of Nomura, according to a senior former Lehman staffer also now at Nomura and who has worked with Bhattal.
"He was the consummate professional and an absolute A-plus individual and manager," said the staffer. "Morale has absolutely nothing to do with this," he said, adding that he was not sure why Bhattal was stepping down. The staffer was not authorized to speak publicly on Bhattal's move.
A DIFFICULT MERGER
While the Japanese bank has seen some success from Lehman's purchase, the deal has also given the bank some headaches. The financial markets plunged further after the deal, adding tension to an already difficult merger. [ID:nHKG265083]
Lehman bankers, used to heavy risk-taking at the New York-based brokerage, were frustrated with Nomura's conservative, bureaucratic operating environment. Nomura bankers, meanwhile, were wary of Lehman's high-risk, highly paid staff.
"Cultural differences between the firms cannot be under-emphasized," said Brad Hintz, an analyst at Sanford C Bernstein in New York and a former chief financial officer at Lehman Brothers.
Despite some being thankful for Nomura's rescue of the Lehman franchise after the bank collapsed last fall, a steady stream of legacy Lehman bankers left Nomura earlier this year. Some were also laid off amid the financial crisis.
A Nomura source could not confirm Bhattal's departure, but told Reuters that he expected more former-Lehman bankers to leave come Sept. 1, when their full bonus payouts come due. The source was not authorized to speak publicly about the matter.
To keep Lehman bankers from leaving, Nomura offered many one- to two-year guarantees that they would be paid their full 2007, bull market compensation. Seventy percent of that first-year bonus was paid in April, with the rest coming on Sept. 1.
The guarantees did help secure Lehman bankers, but came at a large financial cost to Nomura.
In addition, the effectiveness of the guarantees may have worn off lately as financial markets' conditions have improved. Some banks were starting to consider hiring staff after shedding thousands of jobs during the financial crisis.
"I would put something like (Bhattal's move) down to a recovery in the markets," Hintz said, adding, "We are actually beginning to see bids being made in the market for talent, in anticipation of an economic recovery."
Nomura bought Lehman's Europe and Middle Eastern divisions last year as well, just after the bank collapsed.
"Among his many notable achievements, he will also be long remembered as one of the key architects in the creation of the new Nomura," said Takumi Shibata, deputy president and COO of Nomura.
Shibata, a veteran Nomura banker, was a lead advocate for the Lehman purchase.
(Reporting by Michael Flaherty, additional reporting by Elinor Comlay in New York; Editing by Rupert Winchester and Maureen Bavdek)
((michael.flaherty@reuters.com; +852 2843 6540; For a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: NOMURA BHATALL/
For Related News, Double Click on one of these codes:
[E] [U] [NAW] [D] [T] [J] [Z] [PSC] [RNP] [DNP] [PCO] [PCU] [PTD] [INVS] [FIN] [JP] [US] [BNK] [BSVC] [FINS] [ASIA] [MRG] [BACT] [DEAL] [LEN] [RTRS] [8604.T]
For Relevant Price Information, Double Click on one of these codes:
<8604.t>
Tuesday, 28 July 2009 22:32:26RTRS [nHKG214165] {EN}ENDS
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