Odey Fallout Stark Warning to Firms Unjustly Protecting High Profile Individuals
Many of you will by now have read the countless headlines since the joint Financial Times and Tortoise Media investigation into Odey Asset Management published 8th June. The founder, Crispin Odey, has been accused by 13 women of various incidents of sexual harassment and assault over a 25-year period at the firm. Crispin Odey denies these accusations. In the last weeks, Crispin Odey has been removed from Odey AM, the firm is set to be dismantled and its funds (even those connected with Odey’s subsidiary Brook Asset Management) have either been suspended or are experiencing substantial redemptions. Various high profile investment houses (including JP Morgan, Schroders and Morgan Stanley) have cut ties with Odey AM and reputationally, that is a death sentence.
But how has it taken 25 years for these allegations to come to light in the public eye? A case was taken against Mr Odey in early 2021, alleging sexual misconduct by Mr Odey of a female employee in her 20s in 1998. The Financial Times opined[1] that it was the District Judge Nicholas Rimmer’s offensive comments towards the complainant then that inspired other women to come forward. The judge proclaimed "I find troubling her (the complainant's) obvious preoccupation with the press, with your (Mr Odey’s) money, and her apparent desire for publicity of her complaint”[2]. No wonder such words incensed individuals who may have genuinely experienced sexual misconduct by affluent, powerful individuals. The judge also congratulated Mr Odey for reaching his 60s without a stain on his character. If the latest allegations are true, it is indeed a terrifying accomplishment.
Many staff (including those at senior level) at Odey AM are claimed to have known about Mr Odey’s behaviour and indeed have been quoted by the Financial Times as warning younger female employees to keep away from the founder, discouraging them from attending lunch with him or any other trips. The complicity of staff to these alleged advances and indeed the “open joke” references to this behaviour suggest an archaic, disgusting culture, where young women can expect to be targeted and that it is up to them alone to protect themselves from unwanted sexual advances. Having worked in the asset management industry as a young female over the last 10 years, I have thankfully never experienced such cultures or behaviours. If I did, would I have the confidence to speak out against a CEO, even if it could mean the end of my career and future? I hope so but would I? Would I simply have resigned and looked for another position? I hope not but I honestly cannot say for certain.
It makes me wonder how commonplace such alleged behaviours may have been over the decades past and how many have not spoken out, for many nuanced reasons. It’s common place that in smaller hedge fund environments, which rely heavily on some senior individuals, there are less protections/deterrents in place against such behaviour by them and that is certainly worrying.
What, as an industry, can we do to ensure individuals do not feel empowered to harass or assault employees or that other employees aware of such behaviours, are not complicit, turning a blind eye. Simply warning other potential victims away from perpetrators should not assuage them of their guilt and make them feel as if they are protecting those at risk. Such toxic cultures are very dangerous and have long term impacts on wellbeing. They should not be given an opportunity to survive and only change when stories “get out” in the press, impacting revenues.
Firms of all sizes need to walk the talk and provide safe spaces for employees to express concerns, without terror (and yes it can be terror) of the repercussions for them, their livelihood or their families/friends. Regulators need to receive comfort of this from firms. There also needs to be stringent, audited mechanisms in place for fair, impartial investigations. If innocent individuals are afraid of being unjustly accused of wrongdoing, the organisation should be able to conduct a comprehensive investigative grievance procedure to get to the truth of any matter. Employees should not feel their career is over by reporting such behaviour or indeed for those supporting genuine victims.
Odey AM has responded to the claims against their founder by stating that it has anti-harassment policies in place and “has at all times complied with all of its legal and regulatory obligations”.[3] So far, so standard.
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We have certainly not heard the last of this case but it must serve as a reminder to the industry to take seriously these allegations, to have impartial grievance mechanisms in place irrespective of a firm’s size and promote an emotionally safe environment for all individuals (regardless of gender or any other factor) to thrive and live their lives free of fear or attack.