Samuels: Hiring a 24-year-old founder's son as CIO caused talent collapse
Sarah Samuels · Succession - Sarah Samuels on Generational Transitions (EP.400) · Aug 12, 2024 · at 33:51
Sarah Samuels (Partner at NEPC) gives Ted Seides a cautionary real-world example of failed generational succession at an investment management firm.
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“This founder's son came to work for the company, 24 years old, becomes the CIO. So he's directing all sorts of stuff and managing people who are 20 to 30 years his senior. Of course we saw turnover, we saw cultural issues, we saw redemptions, and turns out the positions they had were highly illiquid and the stock Performance was just because people were buying and bidding them up. So that was not a sustainable situation and sort of exactly what not to do when it comes to bringing in that next generation and just skipping over all the talent and naming your son.”
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