Jarden shares halve in value, cash bonus payments deferred, cuts more jobs

Staff at investment bank Jarden were told about their bonus payments in recent days.

Tensions are believed to be building internally within the ranks of Jarden – the New Zealand investment bank that made a bold entry into the Australia market three years ago – with details emerging about staff bonus payments awarded in recent days.

Jarden pays relatively high salaries compared to the rest of the market, and when bonuses were handed out in May last year by staff, they were given cash, but had the opportunity to elect equity for their bonus payments.

This year, there had been deferred cash payments for less than half the staff in the bonus pool, with the company saying that this was part of a focus on retention, adding that junior staff were paid a higher cash component.

Sources said that a year ago shares were offered at a value of $NZ25 each, but based on the share sale in the company that was held in February, the value of the shares in the company had halved, selling at $NZ12.50 each.

Concern surrounding Jarden’s financial performance is said to be growing within the ranks internally, creating low morale.

It comes at a time that about seven staff members were understood to have been let go from Jarden’s equities research team.

Melbourne-based consumer banker Tom Wu, was understood to have taken a redundancy, while Sydney-based private equity banker Nick Duke is resigning and energy banker Catherine McCormack was also believed to be leaving.

The next auction round for Jarden shares is set to be held this Friday, which is likely to be telling when it comes to the value that the company’s stock trades at and the state of the group’s financial position.

A Jarden spokesman said that less than 0.5 per cent of the company shares tend to trade and on occasion, the company buys back shares.

It comes after DataRoom reported this month that Jarden, headquartered in Auckland, has injected $20m into its Australian subsidiary just days before its investment bankers here learn about their bonus payments for the past financial year.

Jarden’s year end is March 31 and sources have told DataRoom that Australian staff members are due to receive their bonus on friday to coincide with the share sale.

The New Zealand financial firm that operates in investment banking and private wealth management has been under close watch among those in the financial industry.

It was understood to have offered top dollar to recruit talented bankers in 2020 as part of a move into the Australian market, with estimates that around $12m was spent securing staff.

Its investment bank, which partners with Japanese lender Nomura, has more than 300 staff across Australia and New Zealand, advising on more than $100bn worth of deals, including recently, Brookfield’s buyout of Origin Energy.

There are 160 staff in Australia and 80 in front office advisory roles across the trans-Tasman business.

Deal volume has declined amid a slowing economy after a mergers and acquisitions boom in 2021 during the global pandemic.

Last year, Jarden announced it was separating its investment banking arm from its private wealth business.

As part of a restructure, Robbie Vanderzeil was moved into the position of chairman after initially joining as the chief executive of Jarden Australia.

Aidan Allen and Sarah Rennie were made co-chief executives of the investment bank across Australia and New Zealand.

Jarden’s chief executive James Lee, who spearheaded the Australia expansion, has since left.