Pacific Investment Management Co.’s Bill Thompson is leaving the bond fund manager after serving as its chief executive for 15 years.
The move isn’t surprising though Thompson’s retirement comes earlier than some might have expected after he renewed his contract with the company for a five-year term last year.
Thompson will run the Newport Beach bond manager through the end of the year before turning over full leadership to Mohamed El-Erian, with whom he’s shared the job as co-chief executive since January.
El-Erian, who had been running Harvard University’s endowment fund before re-joining Pimco, also shares the role of chief investment officer with Bill Gross.
Speculation that El-Erian eventually would take over began as soon as his new role was announced.
Since Pimco’s more humble beginnings in 1993, when it had $40 billion in assets and 125 employees working out of a single office, Thompson helped raise the company to $840 billion in assets and more than 1,000 employees in nine offices.
Thompson’s roll as chief executive was to direct business strategy with products, services and relationships.
“Bill has been an extraordinary leader for Pimco and a close friend and partner to me,” said Gross, the public face of the company. “Pimco’s success has as much to do with the leadership and judgment that Bill has provided to the firm as what happens on the trading floors.”
Gross handles the investment strategy for Pimco and is considered one of the top bond managers. Last year he beat 99% of his peers with his Total Return Fund, which earned an 8.7% return.
Thompson and Gross skillfully pulled off a sale of the company to German insurer Allianz SE in 2000.
Said to be a disciplined straight shooter, Thompson is also known for serving coworkers hot dogs on his birthday.
Thompson will tend to “personal priorities” as well as the corporate boards and philanthropic activities he’s involved with when he retires.
