Despite its tarnished reputation and the $30 billion in outflows the fund unit has seen since it settled with regulators Putnam Investments is continuing to be optimistic.
The Boston Herald reports Marsh & McLennan Cos. plans to keep this year's bonuses and the compensation pool intact at the Putnam in an effort to retain top talent. The company also plans to keep bonuses in place next year.
Like any company in a situation similar to Putnam's, executives would be worried about defections among its top tiered personnel. However, sources told The Boston Herald that morale at the company is suprisingly high, despite outflows and the overall gloomy outlook. Some attribute this to the departure of long-time Putnam ceo Lawrence Lasser
, who reportedly wasn't well-liked and to the efforts of Putnam's new ceo, Charles Halderman
In related news, a buzz has begun to grow around Putnam's next move. The Boston Herald reports that experts speculate the company is considering some kind of mega merger to offset the $30 billion it has already lost in outflows.
Halderman is one of the insiders who discount this theory. In an interview last week, the ceo said, "I'm not saying we won't do any acquisitions, but I can say they're harder".
Perhaps the company will go with the other strategy insiders have speculated about. Some say the company may just begin trying to win new clients and old ones back by restructing the company.
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