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.
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