Jarden chief says all is well at investment bank despite internal ructions and performance issues

Workplace issues, a fall in ranking and a management reshuffle, but all is well at Jarden says chief executive James Lee.

Jarden chief executive James Lee has assured Australian employees they are in safe hands as a turbulent year comes to a close with a restructure that abruptly moved local boss Robbie Vanderzeil out of day-to-day operations.

Once a senior UBS figure, Mr Vanderzeil’s move to Jarden’s chairmanship comes amid workplace issues at the bank and as it falls behind many of its rivals in winning advisory work.

The Weekend Australian can reveal Jarden was forced to commission an independent review of workplace concerns raised by one employee because the original complaint was so poorly handled that two staff members resigned from the company. One complainant, sources said, found that they had been restructured out of their position and demoted.

The original complaint in the first half of 2022 was escalated to Mr Vanderzeil, Mr Lee and senior bankers Sarah Rennie and Aidan Allen, who will become the company’s new Australian chiefs.

In August, The Australian reported that a female research employee had resigned from the firm after separate claims of workplace misconduct by the same two senior equities and research staff. At the time, the company said it could not comment on any investigation.

On Friday, when asked about the latest claims of workplace and cultural issues, a Jarden spokeswoman said: “Jarden commissioned an independent review in response to workplace concerns raised by a team member.

“That review has now been completed and Jarden has taken considered and proportionate actions in relation to the findings.

“Jarden is committed to the cultural standards it has set in the workplace and is committed to ensuring that all employees meet these standards.”

Jarden’s Australian business has had a challenging year.

For announced mergers and acquisitions with any Australian involvement, Jarden has slipped to 32nd spot so far this year, well behind fellow newcomers Barrenjoey and Jefferies, according to Refinitiv data. In 2021, Jarden finished in 16th spot. In equity capital markets, Jarden is also well outside the top 10, sitting in 19th spot for 2022, compared with finishing last year at 15th.

Mr Vanderzeil and Mr Allen are understood to have a fractious relationship which has made it difficult for the pair to work together, sources say.

However, the Jarden spokeswoman said: “Our clients benefit from the close working relationship between Robbie, Aidan and Sarah.”

This week’s management reshuffle sees Mr Allen and Ms Rennie join the Jarden board.

“They bring a wealth of experience in growing market-leading integrated investment banking franchises and are trusted advisers to many trans-Tasman corporations,” Mr Lee said in a staff memo sent on Friday.

“Aidan and Sarah are an effective team with a common cultural compass. They are committed to developing our investment bank and equities business, while ensuring independence and the ongoing development of our most important asset – our people.”

In his note to staff, Mr Lee highlighted that Jarden had more than 300 employees across Australia and New Zealand, where it had maintained a dominant position. He said the firm “continued to gain market share in Australia”.

“We will have a town hall in November to give an update on strategy and chat through any questions.” Mr Lee said.

In New Zealand – where Jarden was founded in 1961 and where it is still headquartered – Sam Ricketts and Dan Reynolds assumed the roles of jointly heading the investment bank.

The changes come as tensions have run high this year between the New Zealand head office and Australia, given the latter has a high cost base and has struggled to make it into the top rungs of investment banking advisers.

A staff backlash was evident during Australia’s bonus day earlier this year because executives suggested senior people take large chunks of stock instead of cash to align their commitment with that of the business. There was a standoff before management backed down.

That coincided with Jarden raising about $NZ60m ($54m) via a convertible note issue to fund near-term growth. Australian performance reviews for staff have been postponed until late in the year, suggesting bonus payments will be delayed in 2023.

In his memo, Mr Lee outlined that as a group Jarden was tracking at least two years ahead of a 2016 goal to quadruple the business by 2026 and was expected to post record revenue this year. He didn’t comment on profitability.

“Our equities business has transacted over $NZ50bn, and in corporate finance we advised on over $NZ100bn of deals with some of the leading corporate and private equity clients in Australasia,” he wrote.

“Nomura has become a key partner for the group, and we have jointly worked on a number of initiatives.”

In Australia, Jarden is advising a bidding consortium – comprising Potentia Capital, HarbourVest, MLC Investments and Cbus – on its tilt at ASX-listed Tyro. Jarden also advised on the listing of Peter Warren Automotive and assisted IFM Investors in its pursuit of Atlas Arteria.

The firm is one of three newcomers to the local investment banking sector over the past four years. The others are the Brian Benari-led Barrenjoey and Jefferies, helmed by deal-maker Michael Stock.

Barrenjoey and its partner Barclays ranks third for announced M&A – working this year on deals with a value of $US32.9bn ($52.6bn), while Jefferies is 17th at $US4.4bn. Jarden’s announced transactions total $US1bn so far this year.

On completed M&A in 2022, where fees can be banked, Jarden ranks 37th with $US709.7m in transactions, down from 10th and $US14.2bn in 2021.

Jarden trails Barrenjoey, ranked fourth, and Jefferies at 18th on completed M&A this year.