Stubbs and Jaen Take On New Roles at Bear Stearns
Eric Stubbs, formerly managing director and co-head of the Wealth Management Services Group at Bear Stearns, and Enrique Jaen, a vice president in the same group, have moved to the Private Client Services Group where they will be able to work more directly with clients.
"The Wealth Management Services Group is a cost center that works with brokers and clients on creating financial plans and what I wanted to do with Enrique Jaen was to work more closely with clients and do not only asset allocation but the implementation as well," says Stubbs.
Stubbs' former partner, Co-Head of the Wealth Management Services Group Tony Roth, will now run that group by himself.
Jaen says he and Stubbs requested the move. "In my new client-advisory position, I hope to leverage my years of experience in financial analytics to deliver superior investment insights. Technology will be vital to the services I bring to my clients as we take the best of institutional-risk measurement and asset-optimization strategies and use them to address individual client needs."
In their new roles, Stubbs and Jaen will be working with high-net-worth individuals ($5 million and up) and small pension funds ($20-$200 million). The Private Client Services Group offers investors a combination of proprietary and third-party money management. Stubbs and Jaen say they will manage some clients themselves, distribute the management of other clients within Bear and use outside third parties to manage other accounts, all depending on where the expertise lies to give the customer the best service.
"We have an asset allocation tool that takes into account taxes and concentrated positions and cash-flow needs, combined with a third-party due-diligence provider to help us chose managers, and a proprietary technology to allocate money to managers," says Stubbs. Services will also include risk management and producing sophisticated client reports.
Stubbs holds a Ph.D. in Economics from Harvard and Jean holds a Ph.D. in Applied Mathematics from CUNY Stony Brook. They have worked together for four years. "It is a good marriage," Stubbs says. "We will be working on this as a team."
The new positions took effect at the beginning of the year. "We think this will be good for the clients and good for Bear Stearns," Stubbs adds.
Merrill Lynch CTO John McKinley Moves On
After four and a half years on the job, John McKinley, executive vice president, global head of technology and services and chief technology officer with Merrill Lynch, is leaving the company at the end of February. McKinley says that he is looking forward to moving closer to technology and becoming part or a "business where technology is the business."
"I think that stepping into an operating role in a technology organization is probably one of the leading candidates in terms of the next step for me. Since I raised my antennae, I have come across some things ranging from larger technology organizations to roles in the private investment world," he says.
McKinley says that he is most proud of repositioning the firm as a more "tech savvy" organization and Merrill's response to the Sept. 11 attacks. He says that during his tenure, Merrill became a "source of best practices (which) had a great impact on customer perceptions, analyst perceptions and investor perceptions."
When asked about claims from industry insiders that his egress was part of a Stanley O'Neal (Merrill Lynch CEO)-sponsored house cleaning, McKinley responded, "I would say that four and a half years is a great run as CTO, given the fact that the average tenure in this position is 18 months. It's been a great run."
McKinley joined Merrill Lynch in October 1998 as senior vice president and chief technology officer. He was named executive vice president in February 2000, and head of the combined Global Technology and Services group in February 2002. John Cummings, Merrill's COO of global technology and services, will take over McKinley's role.