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JPMorgan Bosses Take Road Less Traveled When Dealing With Problem Employee

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When Kevin Dillon started working for JPMorgan in March 2008 as a "client processing specialist," everybody liked him just fine. Better than fine, in fact. He was praised by his superiors, he received glowing reviews and in just a few months time, he was slated to receive a bonus and a promotion. This was all, however, before he filed a report citing "highly questionable accounting and management practices" at Highland Capital Management LP and recommending that JPM cease "facilitating Highland's improper practices." In doing so, Dillon was forcing his bosses to make a decision re: how to deal with the findings. They could 1) follow his suggestion and cut the hedge fund loose or 2) acknowledge the findings and decide to do nothing about them. In this case, Dill's bosses decided to go with the second option, telling him they were "aware of Highland's improper practices [but] that nothing would be done to remedy the issue."

As I'm sure many of you know, however, when you've got a situation like a Kevin Dillon situation, it does not end there. Because if there's one thing I've found in my multiple decades long career on Wall Street is that a guy like Dillon is gonna be trouble. He won't just accept your decision to look the other way, which is admittedly annoying but something you can deal with if you've got the skills or someone coaching you from the sidelines (me).

First off, you can't fire a Dillon-type straight-away, because it'll be too obvious. This is something that requires a more subtle touch. You will want to, of course, make work life unpalatable for the employee in question, so taking away his bonus, promoting incompetents over him and offering negative but purposely vague reviews is a given. That'll go a long way in psyching out said problem employee. But if you really want to break him...if you really want to leave your mark...if you really want to, in the event this thing ends up a lawsuit, make a name for yourself, give the readers something to aspire to and have people say "that guy may be a whack-job and potentially a racist but he knew how to deal with people," you'll try something like this.

In addition to the retaliatory action, Dillon cites two examples of "alarming behavior" by his supervisor. In one instance in 2008, the supervisor told Dillon he needed to clean "the mess" that was created by an African-American employee "who the supervisor admitted was hired primarily to combat adverse fallout from previous racial and sexual discrimination suits brought against the defendant because of the supervisor's acts," according to the lawsuit.*

In another instance, the lawsuit details how his unnamed supervisor allegedly discussed with Dillon the "wide array of guns he possessed and described to (Dillon) the violent acts he would commit if anybody crossed him or his family," according complaint.

This is just a blueprint of course, feel free to put your own spin on it in whatever way feels natural. For those of you unimaginative fucks who need me to do everything for you, one idea, if you're going to test out the gun scenario on a colleague today, is to do it wearing a purple jumpsuit and start off with something along the lines of "Let me tell you something, pendejo. You see this piece? You pull any of your crazy shit with us, I'll take and I'll stick it up your ass and pull the fucking trigger till it goes 'click'." But I encourage you to test out all kinds of things and let us all know how it goes.

JPMorgan Employee Fires Whistleblower Lawsuit [GT via BI]

*Can the name of this guy who not only tried to (hilariously) intimidate someone by showing them his gun collection but b) also apparently got pawsy with the ladies PLEASE, for the love of god, have his name released? Otherwise we're just going to be forced to come up with the contents of him sexual discrimination cases on our own.

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This Hedge Fund vs. Ex-Employee Lawsuit HAS EVERYTHING

Sexual relations with subordinates, deals to turn South American companies into condom factories, gun collections as collateral, AND MORE.

Connecticut Resident Takes Road Less Traveled In Refusing To Pay Cab Fare (Update)

While Charles Martin, too, passed out in the back of his taxi on the ride home, like his brother in arms, upon coming to he merely questioned the sexuality of the officers on the scene before threatening what would happen if they came any closer. A city man with more than $1,300 in his pocket was charged Thursday morning with trying to snub a taxicab driver out a $43 fare, police said. Charles Martin, 35, of 15 School St., Norwalk, was charged with sixth-degree larceny and resisting arrest and was held in lieu of $1,000 bond. Norwalk police Sgt. Lisa Cotto said a Stamford cab driver showed up at police headquarters just after 3:30 a.m. Thursday complaining that he had a man in his cab refusing to pay the fare from the Stamford train station to the man's School Street home. When police went to the cab, Martin was asleep and appeared drunk, telling them to leave him alone, Cotto said After he was arrested, police found $1,353 in cash in his pocket, Cotto said. Unhappy with being arrested for trying to stiff the cabbie, Martin allegedly warned the police officers -- who he also said were gay -- what would happen when they removed the cuffs from his hands. No word on what that was but odds it involved a pen knife are high. Cops: Man with $1,300 in pocket refused to pay $43 cab fare [Stamford Advocate] Related: Banking Exec Maintains Innocence Re: Stabbing Cab Driver

Highland Capital Management Founder Sees Your Hiding Of Assets And Raises You A Megalomaniacal Prick

As some of you may recall, back in March, Highland Capital Management founder and CEO James Dondero testified that he is "insolvent under Texas family law, if not according to normal accounting rules," despite a 2010 tax return showing his adjusted gross income that year to be in excess of $36 million. The reason his finances were in question was because Dondero filed for divorce in September, and how much he owes his wife Becky is currently in dispute. Becky is "seeking enforcement of a prenuptial agreement guaranteeing her half of the couple’s community property, capped at $5 million," plus "spousal support and interim attorney fees." James, perhaps you can glean, is hoping it will be less than that and perhaps even nothing. One thing that really didn't help? Patrick Daugherty, a former senior portfolio manager at Highland who quit in October, testified that he met with James Dondero for drinks last month. “He told me his plan was to get his net worth down and pay her as little as possible,” said Daugherty, who was called to the stand by Becky Dondero. That testimony was given on March 28th. On April 11, this happened: Highland Capital Management, the $20 billion hedge fund and private equity firm based in Dallas, has launched a lawsuit that calls its former private equity investing chief a “megalomaniacal” manager who engaged in “abusive tirades” that “dehumanized employees.” Patrick Daugherty is the former head of stressed special situations and private equity at Highland Capital Management, where he was responsible for $8 billion of assets until he resigned in September 2011. Known as a blunt-speaking Texan, Daugherty has served on the board of Metro-Goldwyn-Mayer and as chairman of companies like Cornerstone Health Group. According to a 14-page complaint Highland filed in Texas state court in Dallas earlier in April, Daugherty has been paid in excess of $26 million while at the firm, but voluntarily resigned after “Highland refused to accede to his unacceptable ultimatums and megalomaniacal demands regarding compensation.” The lawsuit claims that Daugherty was “belligerent to peers” and that Highland employees complained and even quit after Daugherty publicly berated them as “‘f—ing idiots’” and disparaged them using other vulgarities. Highland, which has a reputation in the investment community for using hard-hitting tactics, pulls no punches in a lawsuit that at times can appear cruel. It claims that Daugherty’s tenure at Highland was characterized by extreme behavior and his performance diminished over the years as he “became increasingly unmanageable, erratic, and insubordinate.” It didn't have to be this way, Patrick! $20 Billion Highland Capital Calls Former Private Equity Chief "Megalomaniacal" [Forbes]