People Moves Roundup | Chief Investment Officer

Majedie Asset Management Creates New Head of Responsible Capitalism Role

Majedie Asset Management announced that Cindy Rose is joining the firm in a newly created role as head of responsible capitalism. Cindy joins from Aberdeen Standard Investments, where she was head of environmental, social, and governance (ESG) clients and products.

She was previously co-head of ESG and stewardship at Aberdeen Asset Management.

Rose will lead and further develop Majedie’s commitment to responsible capitalism, an ethos the company formally adopted at its 2012 client conference to explain its overarching company purpose: to make money for clients—responsibly.

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Majedie is a signatory to the Principles for Responsible Investment, a Tier One Signatory to the Financial Reporting Council’s Stewardship Code and a member of both the Investment Association and the New City Initiative, which gives a voice to independent, owner-managed firms that are entirely focused on and aligned with the interests of their clients and investors.

Rose is expected to begin her new role in late August.

GoldenTree Asset Management Names Christopher Hayward Partner and President

GoldenTree Asset Management announced that Christopher Hayward has been named partner, president, and member of the executive committee.

Hayward succeeds Robert Matza, who is retiring. He brings more than 27 years of experience in the investment management industry to GoldenTree. He was previously managing partner and co-head of J.P. Morgan Global Alternatives and, within this alternatives group, managing partner and chief operating officer of Highbridge Capital Management.

“Since our founding in 2000, we have focused on building a strong partnership and deep leadership team based on a culture of collaboration, operational excellence, and a focused, research-driven investment approach,” said Steven Tananbaum, founding partner and chief investment officer.

Matza’s new advisory role will include ensuring a seamless transition of responsibilities to Hayward. Matza will remain invested in GoldenTree’s funds and maintain an office at the firm. He will also pursue numerous charitable and business interests.

NISA Investment Advisors Announces Managing Director Appointments

NISA Investment Advisors is pleased to announce the promotion of two company executives, Cheryl L. Hanson, CPA and Bella L. F. Sanevich, Esq., to the Managing Director level. “These promotions are an affirmation of the positive contributions that both Cheryl and Bella have made to NISA over the years, and are part of our ongoing efforts to broaden the management responsibilities of our senior leadership team,” said Jess B. Yawitz, Ph.D., chairman and chief executive officer of NISA Investment Advisors.

Hanson and Sanevich have each been with NISA for over 15 years.

Foresters Financial Bolsters Its Leadership as It Refocuses on Life Insurance

Foresters Financial announced the further bolstering of its senior leadership team with the appointment of its new chief operating officer, Bruce Hodges, as the organization repositions to focus on its core life insurance business.

Joining recent appointments Marcia Mendes d’Abreu, chief human resources officer; Alvin Sharma, global chief financial officer; and David Longfritz, chief marketing officer, Hodges rounds out the leadership team.

Hodges comes to Foresters at a transformative time following the organization’s April announcement to sell assets related to its US asset management business.

With 30 years of financial services, insurance, and IT expertise, he has leadership and international experience at Generali, ING, Manulife Financial, and Sun Life Financial that spans markets including North America, Europe, and Asia.

Under the direction of Foresters President and CEO, Jim Boyle (formerly John Hancock CEO and a member of Manulife’s Executive team), this purpose-driven organization continues to build on successive years of record sales, positioning Foresters for long-term growth and success.

Tags: Foresters Financial, GoldenTree Asset Management, Majedie Asset Management, NISA Investment Advisors, People Moves

Papa John’s founder John Schnatter, forced out as chairman due to his racist remarks, is selling his 31% stake in the pizza chain, completing severing ties with it. This is a big help to his successor, hedge fund honcho Jeff Smith.

Smith’s Starboard Value fund, which now apparently is the largest shareholder in Papa John’s, with about 10% of the shares, has pumped $200 million into the company. And Smith, known for his turnaround chops as Starboard’s chief executive officer and chief investment officer, also is the restaurant company’s new chair.

Wall Street is applauding Smith’s replacing Schnatter and the founder’s unloading his equity holdings, a transaction that was revealed Monday in an SEC filing. After the news broke that Schnatter was selling his shares, the stock climbed 4.4%. It still is $10 shy of its level right before his racially insensitive comments became public last July. Shortly after the controversy erupted, Schnatter stepped down as board chairman but stayed on as a director.

Owing to the bad publicity, the chain’s sales tumbled last year. As a result, 2018 earnings were pared by about 90% compared to 2017’s showing, and Papa John’s slid deeply into the red. In this year’s first quarter, revenue has climbed back almost to its level before the controversy erupted. And its losses shrank considerably, as well.

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Analysts have reacted optimistically to Schnatter’s sale. Stifel Financial recently upgraded its rating on the stock to a “hold,” from a “sell.” An analyst’s report from the investment firm says that Schnatter’s stock divestment would help make Papa John’s easier to sell if the company were looking for a buyer.

More immediately, Stifel writes, the total removal of Schnatter from the company means it will enjoy greater sales of both its pies and its shares.

Smith’s track record as a turnaround artist was cemented by his Olive Garden revamp in 2014. When he became chair of Papa John’s in February, the stock quickly shot up from its 52-week low earlier in the month.

Smith’s slate of new directors has won Papa John’s favorable notice, in particular the addition of retired basketball star Shaquille O’Neal as the board’s first African American—a plus in light of the bad odor left by Schnatter, who also criticized football players kneeling during the National Anthem to protest racism. O’Neal owns nine Papa John’s outlets in the Atlanta area, and likely will become the chain’s public face, perhaps in TV ads.

Since Smith’s takeover, Papa John’s also has added Michael Dubin (CEO and founder of Dollar Shave Club) and Jocelyn Mangan (CEO and founder of board diversity venture Him for Her, and former executive at Snagajob and OpenTable) as independent directors. Plus, he put the new CEO, Steve Ritchie, on the board, as well as former Pinnacle Entertainment chief Anthony Sanfillippo.

“We believe investors are taking a more optimistic view of the company’s prospects, arguing a new brand spokesperson [O’Neal] coupled with new, highly-engaged board members can reverse the declining SRS/traffic and EBITDA trend,” Stifel writes. “We remain concerned low franchisee profits will require ongoing financial support from the company and declining transactions will pressure commissary profits but, in the near-term, investor optimism could outweigh these fundamental issues.

Schnatter, whose term on the board expired last week, did not run again. He had attempted to reclaim his throne through lawsuits and even tried to match Smith’s investment. But the board declined his offer. His likeness was removed from all marketing materials.

Neither Papa John’s, Smith, nor O’Neal could be reached for comment.

Tags: ESG, Hedge Fund, Jeffrey Smith, John Schnatter, Papa John’s International Inc., Starboard Value