Stockbroking and research group CLSA Australia has suffered a massive blow as 25 staff resigned from the outfit, in one of the biggest ever employee raids in Australian banking.
The resignations, first revealed online by The Australian, occurred on Friday and included Australian chief Andrew Norman, head of research Richard Johnson, sales boss Ed Clegg and head of trading Karl Guilfoyle.
The exits – which span research analysts, sales traders and equity staff – cover more than a third of CLSA’s Australian employees including the investment banking division.
Sources said the Australian departures were part of US firm Jefferies’ assault on CLSA, designed as a way of pushing further into Asia. Jefferies is strong in the US and Europe but is less so in the Asia Pacific. The large CLSA group are set to join Jefferies locally after periods of gardening leave of one to three months.
The poaching spree comes less than a month after CLSA shook up its local investment banking operations, a move that was accompanied by the immediate departure of chairman Andrew Low and corporate finance boss Mark Dorney.
Globally, CLSA has also endured ructions after group chief executive Jonathan Slone resigned in March. That followed large cuts to the firm’s bonus pool and the expiry of an agreement late last year that ensured that CLSA was run at arm’s length by China’s CITIC. It acquired the CLSA business in 2013.
Nigel Beattie, CLSA’s operating chief, left the company at a similar time to Mr Slone.
High profile CLSA global strategist Chris Wood, who authors the high profile “Greed & Fear” report, has also joined Jefferies following the international upheaval.
Other top CLSA executives are said be in Jefferies sights and sources suggested Mr Slone could be one of those.
Early last year, Jefferies hired former Credit Suisse head of investment banking Michael Stock to help build its presence in Australia. The firm has won a string of advisory mandates since opening its doors.
Expansion seems to be firmly on the agenda for the company.
After hiring a number of senior staff and Mr Wood last month, Jefferies global equities boss Peter Forlenza was quoted saying the group was establishing its “next leg of growth” across the Asian region.
Mr Stock, Mr Norman and other CLSA Australia staff did not return calls seeking comment.
Globally, New-York listed Jefferies provides investment banking, equities, fixed-income and asset and wealth management services.
CLSA entered Australia in 2009 by hiring rated banks analyst Brian Johnson before expanding its research and equities teams.
Founded in Hong Kong in 1986, CLSA – which has focussed on providing independent research - is in 21 locations.
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