Letter to Pimco Executives Alleges Discrimination Toward Women Employees
By Justin Baer
Current and former employees of Pacific Investment Management
Co. wrote to the investment firm's senior executives alleging a
pattern of abusive and discriminatory behavior toward women and
urging them to take steps to fix gaps in pay and promotions.
The letter, which was signed by 21 women, was sent Thursday to
Pimco's top leaders, including its chief executive, Emmanuel Roman,
and the firm's investment chief, Dan Ivascyn. Three of the women
who cosigned the document have filed lawsuits against Pimco in the
past two years, alleging gender or racial discrimination. Pimco is
fighting the lawsuits.
"We are calling on you to step in and rectify these longstanding
issues and create a company that provides equal opportunity and
treatment to everyone regardless of their race, gender or
disability," the women wrote.
The current and former employees asked Pimco's leaders to
identify and correct disparities in pay and promotions, develop a
five-year plan to diversify its senior staff and set up a complaint
hotline run by an independent party.
"Pimco promptly investigates and responds appropriately to
allegations of misconduct," a spokesman for the firm said. "As soon
as these claims were brought to our attention, Pimco engaged a
highly experienced, third-party expert to conduct an independent
review of these matters."
The spokesman said the review was done several weeks before the
current and former employees sent their Jan. 28 letter, and that
Pimco has already addressed many of the actions they
He said Pimco conducts an annual review of pay and promotions in
an effort to prevent biases and enforces anti-retaliation measures.
In 2018, the firm hired an independent ombudsman to provide a forum
for employees to raise workplace concerns confidentially. Mr. Roman
sent an email to staff earlier this month reminding them how they
can access the service.
Women comprise 19% of Pimco's 77 managing directors, its top
management rank. Among executive vice presidents, 21% are women.
And in its 50-year history, the firm has never had a Black managing
Pimco's hard-charging and competitive culture, notable even by
Wall Street standards, has been a fixture throughout most of the
firm's history. The firm earned a reputation for pushing its junior
staff harder than many of its peers.
The payoff for those who make it to managing director is
notable: The firm, which is owned by German insurer Allianz SE,
sets aside about 30% of its annual profits for managing director
Pimco typically appoints four to six new managing directors a
year. The firm has about 3,500 employees; 37% are women. It
couldn't be determined what percentage of employees are
In Thursday's letter, the current and former employees said the
firm has made it even harder for women to make a successful climb
to the top. They wrote that women are paid less than their male
counterparts, lose career opportunities after pregnancies and face
retaliation if they complain. The letter said the firm has also
ignored instances where male employees sexually harassed female
colleagues and alienated women of color for their choice of
hairstyle and dress.
"Pimco's policies and procedures prohibit discrimination,
harassment, and retaliation of any kind and the firm takes claims
of such conduct very seriously," the Pimco spokesman said.
Write to Justin Baer at email@example.com
(END) Dow Jones Newswires
January 29, 2021 15:35 ET (20:35 GMT)
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