Credit Suisse Group has agreed not to hire any Morgan Stanley employees until mid-September, a move widely seen as a condition of the severance package under which John Mack, president and coo, left Morgan before joining Credit Suisse First Boston as chief executive. Human resources managers at CSFB sent a copy of the agreement, which covers employees at every level at Morgan, to recruiters last Monday. Mack did not return calls. Press officers at CSFB and at Morgan Stanley declined comment.
Although Mack resigned from Morgan in January, he stayed on at the firm until March and therefore the Sept. 17 expiration of the moratorium represents the standard six-month hands off period that usually covers senior executives switching jobs, according to headhunters. However, the agreement is exceptional in that it covers employees at every level of Morgan, a fact that some see as a testament to the level of respect Mack commands at his former firm. "He's a rock star," said a derivatives banker in Hong Kong.
The tenor of the agreement ensures that Morgan is immune from poaching during the first few months of Mack's leadership, which are likely to see the most hiring and firing, said bankers and headhunters.
In the letter sent to recruiters, a copy of which was obtained by DW, states "The implications of the moratorium for yourselves are that for any individuals...whose resume you have submitted to CSFB, whom you might be approaching on behalf of CSFB or who is currently interviewing at CSFB must be withdrawn immediately." The version DW obtained was signed by Nael Islam, v.p. human resources in Singapore. Islam declined comment.
One recruiter noted that Morgan has long been regarded as one of the best employers on Wall Street while CSFB has been accident prone and has struggled to retain rainmakers. The moratorium could signal the tide turning in favor of CSFB, he added.
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