Janus Board Ousts Black as CEO amid Profit Swoon

July 14, 2009 (PLANSPONSOR.com) -Mutual fund company Janus Capital Group announced Chief Executive Officer Gary Black had stepped down from his post on Monday as the company said the tough market conditions have led to a 76% quarterly profit swoon.

Black, who has led the Denver-based firm since January 2006, departs as a result of what a Janus news release called a “mutual decision” made with the company’s board of directors. Janus said Black will initially be replaced by Janus director Tim Armour, who was tapped as interim CEO.

The company also said second-quarter profit from continuing operations fell to $15.8 million, or 10 cents per share, from $65.6 million, or 40 cents, a year earlier. Revenue fell 34% percent to $200.2 million, and assets under management slid 31% to $132.6 billion.

“After much consideration, Gary and the board have come to the mutual decision that the time is right to bring new leadership to Janus,” said Steve Scheid, chairman of the Janus Capital Group Board of Directors, in the news release, distributed on Tuesday.

According to the Janus announcement, Armour, 60, has more than 20 years of investment industry experience, including 10 years as a senior executive at Morningstar and five years as president of Stein Roe Farnham’s mutual fund division. Armour joined the Janus Capital Group Board in March 2008 and served on the board’s strategic planning committee.

Armour will take over routine company operations and help select a permanent CEO, Janus said in the announcement.

“Tim’s industry experience, combined with his role on the strategic planning committee, will help make this transition seamless,” said Scheid, in the announcement. “Importantly, Tim has worked closely with Janus’ leadership team, including Janus’ co-chief investment officers. We don’t anticipate any changes to the investment process or the structure of the investment team, which is serving our shareholders and clients extraordinarily well.”

Black joined Janus in April 2004 as chief investment officer.

The Janus announcement is available here .