If you are related to the finance sector, then this wouldn’t be the first time that you are told how DE Shaw is one of the most popular investment firms in the world.
But this might be the first time you would learn that DE Shaw, with its over $50 billion of managed assets, is currently involved in an apparent talent war with one of its former start employees.
It wasn’t too long ago, 18 months to be specific when DE Shaw fired one of its partners. The partner in question, Dan Michalow, served at the firm as its managing director after having risen to the ranks with years of experience in investment management.
According to reports coming from DE Shaw, the firm fired Michalow on the grounds of sexual misconduct. While the decision was made public on May 2018, it had all been finalized behind the scenes two months prior in March 2018.
While Michalow left the firm quietly, he broke his silence soon after his departure. Taking an approach to clear his name, the former wealth manager publicly stated that he was not a pervert and that his termination had been wrongful.
DE Shaw, on the other hand, maintained its position and continued with its day to day operations as usual. But what the firm once again did behind the scenes came back to the surface later.
It was recently revealed that DE Shaw has been intent on asking its employees to sign noncompete contracts that stop them from joining forces with a competitor soon after leaving DE Shaw.
While the company maintained that it was standard practice for wealth management firms, some people put two and two together to explain that it was apparently related to Michalow’s mysterious departure.
Since Michalow was fired in March 2018, his departure clause of not partnering up with a DE Shaw employee expires on September 2019. Due to his, he would be free to hire any from the firm who sees fit to work with him.
We will continue to monitor how this progress and keep you up to date.