Left: Anya Schnoor, senior vice-president, investments, Scotiabank Jamaica, will take up the position of CEO of Dehring Bunting and Golding on July 1.Right:Peter Bunting has re-entered politics. He departs DB&G on June 30, along with former partner Mark Golding. - File photos

Ashford W Meikle, Business Reporter

Anya Schnoor, the newly tapped CEO of Dehring Bunting and Golding, says the pending departure of Peter Bunting won't hurt the investment bank, arguing that it merely truncates the transition period originally defined as two years in the takeover document.

"You have to understand that these are people who sold their business," said Schnoor, who as a vice -president at Scotiabank is responsible for its investment arm. "It's highly unusual that they stayed on."

Schoor who was head-hunted from Pan Caribbean Financial Services by BNS president Bill Clarke, added that whenPan Caribbean acquired Manufacturers Merchant Bank, its head Peter Melhado, did not come with the package he did stay on as a board member.

Scotiabank, six months ago acquired DB&G and had signaled then that it planned to merge its new subsidiary with its wealth management unit. Two weeks ago, Scotiabank advised that DB&G would acquire its subsidiary, Scotia Jamaica Investments Management Limited (SJIM), which is headed by Schnoor, and that the two companies would eventually be merged into one operation under a new name.

No timeline was given for the consolidation, nor was it made clear who would be in charge of the merged entity.

Then came news last week that the former principals of DB&G would, over the next five months, sever ties with the company, which two of them co-founded with former partner Chris Dehring some 15 years ago.

Re-entered politics

A press release from DB&G said that Bunting would be succeeded by Schnoor on July 1, that Mark Golding leaves with him on June 30, while chief operating officer Garfield Sinclair would stay until October 30. Bunting has re-entered politics, with plans to run for a parliamentary seat in Mandeville on a PNP ticket.

The departures were announced two weeks after the stock exchange was given notice of the SJIM acquisition.

Since the DB&G takeover, the investment bank has also lost its marketing manager Kerry-Ann Betton to First Global Financial Services, part of the GraceKennedy group. Another manager was seconded to Trinidad.

On Tuesday, Schnoor said the circumstances were not reflective of a fallout, but she did not rule out the possibility of future redundancies as the investment companies synergise.

"As far as I know one [senior] manager has left," she said, "the BNS/DB&G staff is looking at this as an opportunity to grow. No customers have left and why would they? I mean, when you think about it, what would have changed that would be detrimental to our customers? DB&G is now part of a larger group of companies," she said.

Last November, Scotiabank Jamaica and its Canadian parent paid under $5 billion, or $21.08 per share, to acquire a 68 per cent stake in the investment and merchant bank entity.

Scotiabank subsequently remodeled its local operations, creating a holding company Scotia Group, which in effect became the parent of DB&G and BNS. BNS and Scotia Group now share the same board.

Initially, under the takeover agreement, the three were each committed to DB&G for two years as salaried employees - Bunting on a $7 million salary and 3.0 profit share, Sinclair $6 million and 2.0 per cent profit, while Golding would provide legal services on retainer of $120,000 per month ($1.44m per year) plus 1.8 per cent of core profits.

"The three principals of DB&G (Peter Bunting, Gary Sinclair and Mark Golding) were contracted for a two year period to enable a smooth and orderly transition to new leadership," said Schnoor.

"This transition has proceeded smoothly and DB&G is comfortable with allowing the three principals to be released from their contracts early, as they have requested, for personal reasons."

Efforts at comment from Messrs Bunting, Golding and Sinclair were unsuccessful.

Looking ahead, Schoor who says she has no plans to be the type of manager Bunting was, says she hopes to grow the company rapidly.

"SJIM is a relatively small company; our intention is to grow and grow very rapidly. So, when we have looked at the numbers, I can't say there will be no redundancies, but we don't expect it to be on any large scale," she told the Financial Gleaner.

"Of course we have the benefit of our association with Scotiabank which is always looking for people because of how large it is and our intention is to work with everybody and to make sure that people are placed in the right positions."

ashford.meikle@gleanerjm.com