Western Asset Management Appoints New CEO Post SEC Investigation
Western Asset Management Co., a global active fixed income solutions manager and a Franklin Templeton subsidiary, has made significant leadership changes. Thomas J. Gahan, founder and chairman of Benefit Street Partners, a credit manager with over $75 billion in assets under management, has been appointed as the new president and CEO. At the same time, James W. Hirschmann III, the former CEO, has transitioned into the role of chairman.
These changes, effective immediately, mark a pivotal moment for the company. The decision follows legal action taken by the Justice Department and Securities and Exchange Commission against former Western Asset Management co-CIO Ken Leech. Leech faces charges of investment advisor fraud, securities fraud, commodity trading advisor fraud, commodities fraud, and making false statements. These charges carry hefty penalties, underlining the seriousness of the allegations.
Gahan, with his extensive experience and background at Benefit Street Partners, brings a wealth of knowledge to his new role. In his capacity as president and CEO, Gahan will leverage his operational expertise and credit market insights to chart a path forward for Western Asset Management. Meanwhile, Hirschmann, as chairman, will focus on bolstering client relationships globally, an essential aspect of the firm’s strategy moving forward.
As Franklin Resources Inc. President and CEO Jenny Johnson noted, the fixed income landscape is evolving, and there is a need to offer investors solutions across both private and public markets. Gahan’s leadership and understanding of credit markets will be instrumental in positioning the firm for long-term success. Hirschmann’s dedication to Western Asset Management will be key in strengthening client relationships and driving growth.
With a focus on the future, Western Asset Management is poised to navigate challenges and seize opportunities in the financial landscape under its new leadership team.
