Michael L. Davis, deputy assistant Labor secretary for the Employee Benefits Security Administration, left the agency to become senior vice president and head of stable value at Prudential Retirement, confirmed Josh Stoffregen, a Prudential spokesman.
Mr. Davis, who was the second-ranking EBSA official to Assistant Secretary of Labor Phyllis Borzi, started Monday.
Mr. Davis replaces James King, who was named to the new position of stable value client portfolio manager, “working with the most important and largest stable value clients,” said Jamie Kalamarides, senior vice president and head of institutional investment solutions at Prudential Retirement.
Mr. Davis reports to Mr. Kalamarides. Mr. King, who also is chairman of the board of the Stable Value Industry Association, reports to Harry Dalessio, senior vice president of strategic relationships for Prudential Retirement.
In an interview, Mr. Davis, who joined the DOL in May 2009, said: “I wanted to work in government. It was my expectation going in that I would serve one term and then go back to the private sector.”
Mr. Davis will oversee Prudential's in-plan and third-party stable value product management and development team. As of Sept. 30, Prudential Retirement had $102 billion in “stable value retirement account values,” a combination of stable value wrap insurance and underlying fixed income products.
“Stable value offers a great deal of value relative to other (fixed-income) products like money market funds,” Mr. Davis said.
“Stable value is a core competency for Prudential,” Mr. Kalamarides said. “We continue to see growth.”