Gary Black resigned as CEO of Janus Capital Group, the company announced late Tuesday.
Steve Scheid, chairman of the Janus Capital Group board, told analysts on a conference call that Mr. Black had accomplished what he had set out to do after being named CEO in 2006 and now seemed like the best time for him to depart.
Mr. Scheid said Mr. Black had successfully re-established the Janus brand as well as expanded distribution and stabilized flows. Mr. Scheid called the departure “very amicable. He's going out where he can claim victory.”
Tim Armour, a Janus director, was named to replace Mr. Black on an interim basis, according to a news release from Janus. He will assume day-to-day management of the company and assist the board with the recruitment of a permanent successor, according to the release. Mr. Armour joined the board in March 2008 and served on its strategic planning committee.
When asked by one analyst whether Mr. Black's departure would improve morale among employees who have long grumbled about management, Mr. Scheid replied: “I think that Gary's done a great job,” he said. “He came at a very difficult time, and the board asked him to do a lot of difficult things. We're ready to write the next chapter.”
For the next CEO, Mr. Scheid said the company will look for someone with investment acumen and expertise, a global perspective, seasoned public company experience and the ability to manage intellectual capital.
“We believe there's a lot of talent in the marketplace,” he said.
Mr. Black's departure comes weeks after what consultants and investment bankers described as serious discussions between Janus and potential acquirers, including MassMutual Financial Group and Franklin Resources, ended without an agreement.
The company today also reported earnings for the second quarter. Assets under management were $132.6 billion, up 19.6% from the first quarter, but down 30.9% from the second quarter of 2008. The second-quarter increase reflected $20 billion of net market appreciation and long-term net inflows of $2.3 billion, the company said in a news release.
Revenue in the second quarter was $200.2 million, up 17.6% from the first quarter but down 34.2% from the year-earlier quarter. Revenues benefited from higher average assets under management, driven primarily by improving global markets and mutual fund performance fees, the release said.
Net income for the second quarter totaled $15.8 million. That compared to a net loss of $818.1 million in the first quarter and a profit of $65.6 million a year earlier. First-quarter results included goodwill and intangible asset impairment charges totaling $856.7 million.
Janus also announced today that it intends to concurrently offer $150 million in common shares and $150 million of convertible senior notes due in 2014.
Douglas Appell contributed to this story.