New Caz boss: I won’t turn us into sharks
JP Morgan Cazenove’s brand new CEO Naguib Kheraj has a long history in investment banking, having worked at Salomon Brothers and Robert Fleming prior to a 10-year career at Barclays.
He joins the British investment bank at an opportune moment, as the famously blue-blooded organisation looks for experienced heads to guide it into the future.
And his extensive contacts book in the industry will further boost the famously well-connected bank.
“I’ve been in investment banking for 22 years and I’ve worked with Caz before, when they advised us at Barclays. Going back to investment banking is a return to my roots,” he said.
Kheraj rejects the notion that his appointment will bring sweeping changes to the way the bank operates.
“It’s a business that is at the top of the industry, so I don’t see any need for dramatic changes. It’s more a question of evolution,” he said.
He is guarded about rumours that his appointment will step on a few toes, most notably those of one managing director, Ian Hannam, who was supposedly eyeing the top job.
“I’ve known Ian since 1986, because we’ve worked together at various different companies. We go back a long way and I think he’s a very talented guy,” he said.
“People internally who didn’t get the job might be disappointed but hopefully we can keep everybody on board.”
Some analysts have predicted a difficult future for the Cazenove wing of the business, a famously genteel group in an increasingly competitive environment. But Kheraj sees no need for the company to toughen up.
He said: “I don’t believe that behaving well and treating people properly means you can’t survive in a cutthroat business, as long as your service is good.”
“You don’t need to be a shark to survive and I’m very optimistic about the future.”
Analyst Views: Does a new era loom at JP Morgan Cazenove?
Justin Stewart (Seven Investment Management): “His appointment may signal a turn away from the old school, perhaps a sign of internationalisation and an end to the Cazenove top hat. I can’t see them going as far as dress-down Fridays, but I can imagine that there will be a marked change in style which might ruffle a few feathers.”
Dave Evans (Betonmarkets.com): “It’s interesting that he has some background in the FSA. It seems to be a trend in investment banks at the moment that there is some overlap between the powers that be and the companies they are overseeing. In this climate, when investment banks have got into trouble, his experience could be very useful.”
Howard Wheeldon (BGC Partners): “I don’t think that Cazenove is too soft for today’s climate. It has steered itself through the last 10 or 20 years very efficiently. It is operating in a very different world and has adapted well to the changes it has faced. I’m sure it will further adapt to changing market conditions.”