Mohamed El-Erian unexpectedly announced that he would be resigning from his position as CEO and Co-CIO of PIMCO, the $US2 trillion money management firm based out of Newport Beach, California.
Allianz, the parent company of PIMCO, issued a statement on the matter and various leadership changes. All we had learned about El-Erian was that he would be sticking around PIMCO until mid-March and remain affiliated with Allianz through an advisory role.
Moments ago, Business Insider obtained a copy of the internal memo El-Erian circulated to PIMCO employees.
In it, he reflected on his time at PIMCO:
…I was so fortunate back in April 1999 to join such an exceptional firm. I vividly remember how I immediately felt at home in a culture that always puts the client first, that is determined to excel, and that values thought leadership as a foundation for continued success.
During my wonderful time at PIMCO, I worked with amazing colleagues who taught and inspired me. I grew professionally and personally. I made lasting friendships. And I had great fun…
The lengthy 4-page letter goes into detail about how it was the people who grew the firm into what it is today.
El-Erian isn’t exactly at retirement age. And while he surely has the wealth to ride into the sunset outside of the public eye, many folks on Twitter and elsewhere immediately speculated that he could head to the Treasury, the Fed, or some other public policy firm.
The memo offered some colour:
After mid-March, I will remain a member of the Allianz International Executive Committee and advise the Management Board on global economic and policy issues. I will also be doing some writing, particularly on central banking and market related issues (and, who knows, there could even be a second book for me).
What happens longer-term is an open question. I have no plans as of now. What I do know is that I am looking forward to something different after an initial 15 year career in international public policy (at the International Monetary Fund, and straight out of universities) and an immediate second 16 year career in finance and investment management (overwhelmingly at PIMCO).
We seriously doubt he literally has “no plans.” It’s an “open question,’ which means he hasn’t ruled too many things out yet. Whatever he does next, we’re sure it’ll be consequential.