In waiting three years to disclose his firms managers profits stemming from improper trading, Putnam Investments CEO Lawrence Lassers leadership was questionable, analysts and investors said Friday, Reuters reports.
Lasser, whose average bonus the past five years has been $20 million and whose total compensation over the same period has totaled $132.5 million, may now have to leave Putnam according to one industry watchdog.
Said the watchdog, Neil Minow of The Corporate Library: "The primary duty of the CEO is to set the tone at the top and enforce the highest standards. This is a failure of communication."
Friday, Putnam acknowledge that in 2000, many of its portfolio managers made profits from allowing certain investors to time the market. The four managers were let go, but critics say doing it three years later is too little, too late.
As if thats not enough, Putnam investors have pulled $7 billion away from the company over the past year, a clear indication that they are losing confidence in the nations No. 5 fund company.