Damage control under way at Pimco after departure of CEO El-Erian
Mohamed El-Erian's departure from Pimco reveals rift with its co-founder Bill Gross
In mid-February, a group of current and former Pimco employees were invited to a private farewell party for Mohamed El-Erian to mark his impending departure as chief executive of the world's largest bond fund.
El-Erian soon realised it was not a good idea, according to three sources who had received the invitations and are in contact with him.
On February 24, the Wall Street Journal published a report describing how El-Erian's previously close relationship with Pacific Investment Management Co co-founder Bill Gross had soured as the firm's investment performance deteriorated last year. Then Gross told Reuters that his one-time lieutenant was trying to "undermine" him, and that he had "evidence" El-Erian "wrote" the newspaper article.
El-Erian postponed the party soon after the March 6 Reuters report, suggesting to colleagues and friends that he did not want things to become awkward for his guests amid the tense situation at Pimco, the sources said.
[Bill] Gross clearly views a lot of the things he has said with some regret
One of these individuals, who subsequently spoke with others on the guest list, said some people had also declined to attend, worried that they could get caught in the bitter clash.