Why Mohamed? Why?

Mohamed El-Erian, former CEO of Pimco, has been unwilling to respond to criticism from the bond investment firm’s chief investment officer Bill Gross because of a strict non-disclosure agreement he made with Pimco, according to two sources familiar with his thinking…Gross said this week that the departure came as a complete surprise and El-Erian still hasn’t explained why. “He hasn’t spoken up, and that’s a mystery to us and quite frankly an extreme disappointment,” Gross told Bloomberg TV in remarks broadcast on Thursday. “He simply said that he wasn’t the man to take the company forward. And he constantly repeated that without explaining it.” [...]

The sources close to El-Erian said that it shouldn’t be a mystery to Gross as to why El-Erian, who was also co-chief investment officer of Pimco until he left the firm in March, hadn’t commented publicly on the reasons for his resignation. If he breached the NDA, which ends in May, El-Erian could put any compensation package he received on his departure in jeopardy and potentially open him up to a lawsuit from Pimco, they said. Gross insisted on the non-disclosure pact before El-Erian’s departure, these sources added.

El-Erian can’t respond to Pimco’s Gross due to terms of departure: sources [Reuters]

Earlier: Bill Gross Wants El-Erian To Say It To His Face

Earlier Than That: Mohammed El-Erian May Have Left Pimco Because Of A Chronic And Debilitating Condition That Caused Him To Regularly Look People In The Eye; Don’t Get Caught On “His” Side: A Survival Guide For Pimco Employees; Pimco Investor Considering Pulling Out Over Secretariat’s Erratic Behavior, Some Other Stuff; The New Bill Gross Doesn’t Bite (And If He Does It’s Only Because Old Habits Die Hard); Cheesecake And Kisses: Bill Gross Reflects

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Comments (16)

  1. Posted by Eat Fesh | April 11, 2014 at 1:49 PM

    Who is the liar but the one who denies that Bess looks great in a two-piece? This is the antichrist, the one who denies her sweat clevage.

  2. Posted by guest | April 11, 2014 at 1:56 PM

    jesus christ bill.

    -bob the cat

  3. Posted by InfiniteGuest | April 11, 2014 at 2:00 PM

    Refreshing to have such a clear example of someone putting cash above the value of his good name & reputation.

  4. Posted by Captain Oblivious | April 11, 2014 at 2:02 PM

    Um Bill, I was tired of your shit. You have clearly become unhinged and are one week away from a complete nervous breakdown. peace out bitches.

    M E-E

  5. Posted by Guestido | April 11, 2014 at 2:07 PM

    I'd say not commenting and letting Gross run his crazy mouth likely has accomplished both.

  6. Posted by guest | April 11, 2014 at 2:12 PM

    this isn't your diary, hombre.

  7. Posted by Guest | April 11, 2014 at 2:14 PM

    He's like a jilted lover who doesn't know to stop calling. He's a female Adriana Ferreyr.

  8. Posted by guest | April 11, 2014 at 2:24 PM

    nailed it.

    -george s

  9. Posted by guest | April 11, 2014 at 2:24 PM

    oh man I'd love to get those two in a room together and have them compare notes.

  10. Posted by Yesterday | April 11, 2014 at 2:41 PM

    That joke is great!

  11. Posted by Tomorrow | April 11, 2014 at 2:54 PM

    We'll see.

  12. Posted by Mohamed's Accountant | April 11, 2014 at 4:30 PM

    The name aint worth what it used to be, have you seen the recent performance of his funds? Its almost like the guy was trying to follow Islamic banking law and eliminate interest. There's a reason he's trying to shop a book deal.

  13. Posted by Jeff G. | April 11, 2014 at 4:31 PM

    I had something other than comparing notes in mind

  14. Posted by quantiger | April 11, 2014 at 6:42 PM

    There is method to Bill's apparent madness. If he provokes El-Erian into breaking his NDA, "The Bill" gets El-Erian's payout. I presume it is millions. I further presume that should those millions become available, that "The Bill" will get it all. For himself. So it is possible that what we are seeing is "The Bill" making an ___ of himself in hopes of getting a ton of money.

    Is "The Bill" motivated by greed? I do believe there is evidence of that. I do — but others may beg to differ I suppose.

  15. Posted by Guy Who Pays 4 Ass | April 11, 2014 at 10:22 PM

    As opposed to you, who is employing the age old strategy of making an ass out of yourself for free?

  16. Posted by Abushanabkizb | May 16, 2014 at 2:11 PM

    The truth is yet to be revealed. Companies like Pimco do not have their CEOs resign so abruptly and instead customarily pave the way long in advance of such resignation to protect the company and its shareholders–which is not what happened here, plus Mohamed was quickly moved out of his office, his portraits taken down and books put in storage by Pimco. What more likely happened is that Mohamed El-Erian made his move to take over Bill Gross' position and simply lost out with Pimco's parent company Allianz standing behind Bill and not Mohamed. Given the way he handled his resignation and its aftermath (to the extent that Pimco cancelled his farewell party), and how he immediately got into a cat fight like spat with his former boss that increased Pimco's outflows negatively impacting Allianz' shares , Mohamed may well end up facing lawsuits for years to come.