Description: Bond King Bill Gross has resigned from the firm he founded. Gross left Pimco – Pacific Investment Management Co. – after a number of months of apparent internal struggles. Gross had been the face of the firm for over thirty years. But now his pictures have disappeared from the company website. The firm’s new CEO speaks of “overwhelming” relief at resolution of the firm’s situation.
Source: Wall Street Journal .com
Date: September 27, 2014
Questions for Discussion:
1) When a firm has such a public departure of a senior executive, what impact do you think it would have on the firm’s value?
2) Given that Bill Gross was the public face of the organization, and was known for his investor letters, what strategies could Pimco use to go forward without him?
3) What role can accountants play in leading their clients through succession-planning issues?