Administration March 9, 2002

Stillwell Pulls Itself Together, Taps New CEO

September 3, 2002 (PLANSPONSOR.com) - Stillwell Financial has tapped a new chief executive officer to take charge of its operations that are newly merged with its flagship Janus Capital Management mutual fund unit.
Reported by

Mark Whiston, 41, an 11-year Janus veteran, will take the reins December 31 when the combination is completed. Whiston is currently president of retail and institutional services. 

The appointment of Whiston, who has a sales and marketing background, stands in some contrast to Bailey, who came from the investment side of the business, according to published reports.  The move also surprised some Industry watchers, who had been expecting the firm to go outside for new leadership.

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Stilwell, which currently owns about 92% of Janus, has been seeking a CEO for the business since Janus founder Tom Bailey stepped down in July 1 after selling his remaining stake in Janus last year.

Bailey’s departure, first announced in June, came at a rough time for the company, which is struggling with declines in its once-hot funds and an exodus of investors who are cashing out of the money-losing portfolios.

The combined company will shut down its headquarters in Kansas City and move its headquarters to Janus’ hometown of Denver, resulting in the elimination of 130 to 140 jobs, according to Reuters.

Stilwell also owns the Denver-based Berger Financial Group, another fund firm hit hard by the market downturn as its growth-oriented stock funds have fallen.

Compliance March 8, 2002

Portman, Cardin Mull Advice Reform Proposal

August 15, 2001 (PLANSPONSOR.com) - Plan sponsors may find it easier to help participants obtain investment advice if pension reformers U.S. Representatives. Rob Portman (R-Ohio) and Ben Cardin (D-Maryland) have their way.
Reported by

Among the possible proposals for a follow-up bill the two legislators expect to discuss after the August Congressional recess is legislation that would allow companies to pay for employees to get finance advice, Portman spokesman Jim Morrell told PLANSPONSOR.com.

Still unclear is whether that would mean visiting a financial planner or whether it could include purchase of advice computer software, he said.

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Morrell said preliminary discussions have centered on companies offering the financial advice payment as part of a “cafeteria-style” benefits package, an approach currently barred.  

“Cafeteria-style” packages typically give employees a specific number of units which they can “spend” on an array of benefits including health, dental, vision, prescription drug, etc.

Not Done Yet

The notion of a “to do” pension reform list first surfaced publicly earlier this summer when Portman and Cardin told a Washington, D.C. conference that their recently enacted legislation was far from the end of their reform efforts (see Portman, Cardin Promise Pension Reform Follow-through ).

On the list, they told the conference, were proposals about participant education driven by the DC industry’s growth of participant-directed plans with long investment option lists.

Most of Portman and Cardin’s Comprehensive Retirement Security and Pension Reform Act was enacted into law as part of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 (H.R. 1836).

– Fred Schneyer         editors@plansponsor.com

For the history of the Portman/Cardin pension reforms, see http://www.plansponsor.com/content/news/opinions/cardinportmanfeature

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