Artio Global Investors Inc. (NYSE: ART) (the “Company”) today announced organizational changes designed to lower its operating costs and more efficiently manage its resources for current business conditions.
As part of these changes, President, Glen Wisher, is leaving the Company. While business expansion remains a key part of the Company’s strategy, it was decided that an executive position focused primarily on non-organic expansion opportunities was no longer required. Mr. Wisher’s responsibilities will be assumed by the other members of the management team.
“During his tenure, Glen played a pivotal role in building Artio Global and was instrumental in our transition to becoming a public company,” said Richard Pell, Chairman, Chief Executive Officer and Chief Investment Officer. “On behalf of the Board of Directors and the entire staff, I would like to personally thank Glen for his significant contribution to the development of the firm and wish him all the very best for the future.”
In aggregate, the Company is reducing its workforce by 25 employees, or approximately 11% of headcount. No portfolio managers, research analysts or client service professionals were included in the staff reductions.
The Company expects this action to result in annualized operating expense savings of approximately $10.0 million, most of which relate to compensation. In addition, the Company expects to record a compensation charge (the “Charge”) of between $7.0 and $7.5 million in the third quarter of 2011 that will be excluded from its adjusted results. The cash component of the Charge is expected to be between $4.0 and $4.5 million and paid over the next 18 months.
“Staff reductions are always difficult. However, like others in our industry, we must manage our business in line with current revenue expectations,” said Mr. Pell. “Producing competitive investment performance for our clients and maintaining the highest levels of client service continue to be our top priorities. With this in mind, no portfolio managers, research analysts or client service professionals were included in the staff reductions. In fact, we expect to continue to selectively look for top talent to complement our investment teams. Furthermore, we remain committed to our long-term strategy of diversifying our mix of assets under management and growing our equity, fixed income and alternative investment offerings.”