Richard B. Handler

Last updated
Richard B. Handler
Born (1961-05-23) May 23, 1961 (age 62)
Education University of Rochester (BA)
Stanford University (MBA)
SpouseMartha Hunt Handler

Richard B. "Rich" Handler (born May 23, 1961) is an American businessman, and chief executive officer (CEO) of Jefferies since 2001 making him the longest-serving CEO on Wall Street. [1]

Contents

Early life and education

The son of Alan and Jane Handler, Richard Handler grew up in New Jersey, graduating in 1979 from Pascack Hills High School in Montvale. [2] [1] He received a BA in economics from the University of Rochester magna cum laude in 1983 and an MBA from Stanford University in 1987. [3] Prior to Jefferies, he was an investment banker at First Boston and later he worked for Michael Milken at Drexel Burnham Lambert in the high-yield bond department. [2]

Professional career

Jefferies

Handler joined Jefferies in April 1990 as a salesman and trader. [2] He was appointed CEO on January 1, 2001 [4] and Chairman in 2002, succeeding Frank E. Baxter. [2] Handler also is Chairman of Jefferies' Global Diversity Council. [5] When Handler joined as CEO, Jefferies had been primarily known as a trading firm with expertise in the energy sector. [6] As of 2022, Jefferies had become the 8th largest investment bank by revenue and the sixth busiest in mergers and acquisitions. [7] As of 2021, Handler owned more than 7% of the stock. [8] According to SEC filings, apart from charitable donations and tax-related sales, Mr. Handler had not sold any of his shares. [9]

Egan-Jones report

In November 2011, ratings company Egan-Jones issued a negative report regarding Jefferies that caused a 20% decline in the Jefferies stock price minutes after the opening bell the following morning. [10] [11] Chris Kotowski of Oppenheimer & Co. made public statements pointing out figures in the Egan-Jones report that were 'so grotesquely wrong they should immediately jump off the page to anyone remotely familiar with the numbers.' [12] [13] The Egan-Jones report was described by Kotowski in his research report from November 23, 2011 titled "Another Hack Attack" as 'flat out wrong', [14] and was followed by what Handler characterized as a multi-week public attack on Jefferies by Sean Egan. [11] Handler and the Jefferies management team responded with unprecedented immediacy and transparency, collapsing in a matter of days 75% of a sovereign debt position that had been identified as a problem by Egan to prove the bonds were hedged and highly liquid, sharply reducing the rest of Jefferies balance sheet, and publicly addressing the accusations on an almost daily basis. [15] This aggressive and unconventional response resulted in an eventual rebound in Jefferies share price. [11]

On June 21, 2022, the SEC charged Egan-Jones Ratings Company with violating conflict of interest provisions in a set of separate matters in 2018 and 2019, concluding that the firm “failed to establish, maintain, and enforce policies and procedures reasonably designed to manage such conflicts of interest,” [16] and further, that Egan himself had caused the violations.

Egan-Jones agreed to settle for a $1.7 million penalty and $146,000 of interest and disgorgement, and Egan himself separately settled for a $300,000 penalty; neither party admitted or denied the SEC’s findings.

Rescue of Knight Capital Group

In August 2012, Handler played a lead role in saving Knight Capital Group after the company suffered a $440 million loss due to a 'technology glitch.' Together with Brian Friedman, the President of Jefferies Financial Group, Handler structured and led the rescue, [17] making Jefferies the largest shareholder with a roughly 45% stake in the company. [18]

Merger with Leucadia

In November 2012, Jefferies announced its merger with Leucadia National Corporation, its largest shareholder and a longtime partner of Handler. In March 2013, Jefferies merged with Leucadia, [19] and Handler became CEO of both companies. [20] In 2018, Leucadia rebranded as Jefferies Financial Group Inc. to better reflect the company’s business focus. [21]

Other professional activities

In October 2018 Handler was named Board Chair by The University of Rochester Board of Trustees, to which he was first elected in 2005. [22] [23] Previously, Handler was Chairman of the Finance Committee and as Co-Chairman of the university's $1.37 billion Capital Campaign, The Meliora Challenge that concluded in 2016. [24]

Handler is active on social media where he often runs ‘ask me anything’ sessions on Instagram targeted at the next generation of bankers and traders. [25] [26]

Philanthropy

In 2006, Handler and his wife, Martha, established a scholarship program at the University of Rochester. Named the Jane and Alan Handler Scholarship Fund (after his parents), the program provides financial support for undergraduates of diverse backgrounds who meet certain criteria of financial need, overcoming adversity and demonstrating leadership. The scholarship is awarded to one percent of each graduating class and covers all tuition and expenses. [24] [27]

Handler is also active in conservation efforts through the Wolf Conservation Center, of which his wife presides as president. [28]

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References

  1. 1 2 "10 Things You Didn't Know About Jefferies Financial CEO Richard Handler". Money Inc. November 13, 2021.
  2. 1 2 3 4 "'Intensely Private' Handler Lifts Veil in Defense of Jefferies". Bloomberg.com. 2011-12-19. Retrieved 2021-10-08.
  3. ↑ "Richard B. Handler, MBA '87". Archived from the original on 2014-03-26. Retrieved 2023-08-09.
  4. ↑ "Jefferies Announces Leadership Change; Richard Handler Named CEO, Will Lead Firm with President and COO John Shaw; Frank Baxter Remains Chairman". Archived from the original on 2014-05-02. Retrieved 2023-08-09.
  5. ↑ "DEFINITIVE PROXY STATEMENT". www.sec.gov. Retrieved 2024-04-07.
  6. ↑ Strongin Dodds, Lynn. "Jefferies revamps its image". www.fnlondon.com.
  7. ↑ Russell-Walling, Edward. "Jefferies delivers cross-border M&A success". www.thebanker.com.
  8. ↑ Natarajan, Sridhar (7 October 2021). "Wall Street's Newest Billionaire CEO Is Beating His Banking Rivals in Best Year Ever". Bloomberg.com.
  9. ↑ "DEFINITIVE PROXY STATEMENT". www.sec.gov.
  10. ↑ "Tiny shop Egan-Jones Ratings Co. has a big impact". Crain's New York Business. 2011-11-04. Retrieved 2021-10-08.
  11. 1 2 3 Craig, Susanne (4 December 2013). "An Unexpected Apology Stokes the Embers of a Feud". DealBook. Retrieved 2021-10-08.
  12. ↑ "Jefferies Note by Egan-Jones 'Flat Out Wrong,' Kotowski Says". Archived from the original on 2013-05-29. Retrieved 2023-08-09.
  13. ↑ "Normalcy Returns Faster Than You'd Think After Financial Crises" (PDF). Retrieved 2023-08-09.[ dead link ]
  14. ↑ "Jefferies Group" (PDF). Retrieved 2021-10-08.
  15. ↑ "'Intensely Private' Handler Lifts Veil in Defense of Jefferies". Bloomberg.com. 2011-12-19. Retrieved 2021-10-08.
  16. ↑ U.S. Securities and Exchange Commission (June 21, 2022). "SEC Charges Egan-Jones Ratings Co. and CEO with Conflict of Interest Violations".
  17. ↑ Popper, Ben Protess and Nathaniel (2012-08-07). "Quick Lunge for a Lifeline Helped Knight Capital Skirt Collapse". DealBook. Retrieved 2023-08-09.
  18. ↑ Philbin, Brett. "Knight Deal Could Add To Jefferies' Windfall As Lead Rescuer". WSJ. Retrieved 2024-04-07.
  19. ↑ Alden, William (2014-04-02). "Handler, Leucadia's Chief, Takes Pay Cut in New Role". DealBook. Retrieved 2023-08-09.
  20. ↑ Jefferies Press Release http://www.jefferies.com/News/PressReleases/201/304 [ dead link ]
  21. ↑ "Leucadia to shed most non-financial assets, rename as 'Jefferies'". Reuters. April 9, 2018.
  22. ↑ "Richard Handler - Forbes". Forbes . 2013-01-19. Archived from the original on 2013-01-19. Retrieved 2022-07-22.
  23. ↑ "About the University of Rochester". University of Rochester. Retrieved 2022-07-22.
  24. 1 2 "Richard Handler '83 elected University Board chair". University of Rochester. October 5, 2018.
  25. ↑ "Meet the Jefferies boss: Rich guy without a handler". Australian Financial Review. 7 March 2024.
  26. ↑ Rosa Royle, Orianna. "Wall Street CEO advises anyone struggling with work-life balance to 'take control of their own choices'". Fortune.
  27. ↑ "Richard B. Handler '83". University of Rochester.
  28. ↑ "Wolves of Wall Street Party to Save Actual Wolves of Westchester". Bloomberg L.P. June 6, 2019.
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