April 20, 2004 -- Janus Capital Group (JNS) said Mark Whiston is stepping down as chief executive officer, and will be succeeded by Steve Scheid, effective today.
Scheid, a former executive at Charles Schwab Corp. (SCH), will also continue as Janus' chairman of the board.
The company noted that Whiston will remain with Janus in a "consulting capacity" until the end of the year to ensure a "smooth transition."
"CEOs of fund companies that are facing investigation of trading abuses are paying the price by losing their positions," commented Louis Harvey, president of Dalbar Inc., a Boston-based mutual fund consulting firm. "This is part of a clear and unmistakable trend. We've already seen it happen at Putnam, Alliance and Strong, among others, and I have no doubt that we will see more similar resignations of fund executives."
As reported last December, Janus agreed to pay $31.5 million to settle charges of frequent trading of its mutual funds and other accounts.
On March 15, Janus hired Gary Black, formerly an executive with Goldman Sachs, as its president and chief investment officer. Black will be responsible for all Janus Capital Group products and investment management activities.