GAM Holding dismissed Tim Haywood, the bond manager at the center of a scandal that's sent assets tumbling.
Investors have fled the investment firm, cutting assets under management by almost 3 billion Swiss francs ($3 billion) since the end of November, the company said. The drop for the full year was the worst in a decade and missed the company-compiled analyst estimate by about 4 billion francs. GAM also suspended its mid- to long-term financial targets.
The ouster of Mr. Haywood for "gross misconduct" caps a tumultuous period for the Swiss firm. Investors have pulled about $16.3 billion from the company since the end of June and the shares have dropped about 70% since Mr. Haywood's suspension. GAM is cutting 10% of its work force and the board proposed slashing the bonus pool for executives by almost two thirds.
"2018 marked the most difficult year for GAM since its independence 10 years ago, and 2019 will continue to be challenging," Chairman Hugh Scott-Barrett said in a statement Thursday.
Regarding Mr. Haywood's suspension, GAM said that there was "serious failure" to achieve the standard of skill and care that should be expected of someone in his position. Bloomberg reported the plan to dismiss him Wednesday.