More Resignations At Boston Co.
BOSTON (AP) _ A weekend push to assure executive loyalty at Boston Co. Asset Management Inc. has triggered a second string of resignations from the Mellon Bank Corp. investing subsidiary, the company confirmed Tuesday.
At least 11 employees left the company Monday to join Boston Partners Asset Management, an investment firm formed last week by former Boston Co. executives after their failed takeover bid of the company.
The Boston Co. acknowledged their departures, but said they would not significantly affect the company’s management system.
``Many of our clients have expressed support, and we’re very optimistic and very sure that we’re going to be able to continue to provide our clients with the same investment management philosophy and style that they hired us for,″ spokesman Jonathan Hubbard said.
Several institutional clients have said they are evaluating their commitment to Boston Co. Asset Management, which manages $26 billion in assets.
About 20 of Boston Co. Asset Management’s 150 employees have resigned since its chief, Desmond Heathwood, quit to form Boston Partners.
Heathwood and several other executives left after Mellon rejected his reported $150 million takeover offer. Heathwood had accused Mellon, which bought The Boston Co. in 1993, of meddling.
Mellon has sued Heathwood and four former executives, accusing them of plotting to defect from The Boston Co. and taking business _ and privileged information _ with them.
Over the weekend, Mellon and Boston Co. Vice President Christopher Condron asked remaining executives to pledge that they would not compete with the company if they resigned before July 1996.
Condron also gave them an option of taking a paid temporary leave of absence if they didn’t want to make the pledge immediately, Hubbard said.
``We asked our senior people to commit to our organization and we did that because it’s the only fair thing for our clients,″ Hubbard said. ``There was no ultimatum given.″