Richard B. (Rich) Handler (born May 23, 1961), is currently Chairman, Chief Executive Officer, and President of Jefferies & Co. ("JEF"--NYSE), having held these positions since 2001, 2000, and 2006 respectively. Handler grew up in Fair Lawn, New Jersey and Woodcliff Lake, New Jersey.
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Handler was first elected to Jefferies Board in 1998. He was the Managing Director of High Yield Capital Markets at Jefferies from May 1993 until February 2000, after co-founding that group as an Executive Vice President in April 1990. Handler was CEO of the Jefferies Partners Opportunity Family of Funds from 2000 until they matured in 2007 and is currently CEO of the successor funds: Jefferies High Yield Trading, LLC and Jefferies High Yield Holdings, LLC. All of these investment partnerships/broker dealers (Hedge Funds) invest in high yield bonds, distressed securities, bank debt, trade claims, and leveraged equities for the benefit of Jefferies, Jefferies employees, and third party investors.
"For the 21 year period Mr. Handler has worked at Jefferies, Jefferies shares compounded annually at 19.6%. Since Mr. Handler joined Jefferies in 1990, he has always taken a significant portion of his compensation in equity form. For the 11 year period since he became CEO, 77% of Mr. Handler’s compensation has consisted of non-cash equity related securities vesting over three to five years. Aside from charitable donations, Mr. Handler has never sold any of his Jefferies shares." [1]
Richard Handler is also Chairman and CEO of the Handler Family Foundation, a non-profit foundation working primarily with underprivileged children. Handler received an MBA from Stanford University in 1987, where he serves on the Business School Advisory Board. He received his BA in Economics (Magna Cum Laude/High Distinction) from the University of Rochester in 1983 where he also serves on the Board of Trustees and is Chairman of the University’s Finance Committee. Handler has donated $25 Million for the Jane and Alan Handler Scholarship Fund (in honor of his parents) which pays all expenses for 4 years for exceptional students deemed to be potential future leaders who come from disadvantaged backgrounds. [2]
Prior to 1990, Richard Handler worked as a junk bond trader in Beverly Hills, CA for Michael Milken at Drexel Burnham Lambert. He also worked as an Investment Banker at The First Boston Corporation from 1983-1985.
Handler is one of the longest serving CEO's of a Wall Street Investment Bank. He owns 8% of the Investment Bank and his stake alone is worth approximately $350 million. [3]
Handler quotes: "When I say morale is solid, we are not going around giving high fives saying look how much we made compared to last year," Mr. Handler says. "If you have to tell your people not to flaunt your wealth, then you may have the wrong people. If you are in our industry and don't realize that you are vastly overpaid and you are one of the luckiest people in the world, then your day is coming." [4]
(Wall Street Journal) http://www.wallstreetoasis.com/forums/prudence-pays-off-for-jefferies%E2%80%94and-its-workers-0
(Barrons Rising Stars)http://online.barrons.com/article_email/SB126541465056441621-lMyQjAxMTIwNjA1NjQwMTY0Wj.html#articleTabs_panel_article%3D1
(Top 50 Wall Street MVP's) http://www.businessinsider.com/complete-clusterstock-list-2011-5#
(Prudence Pays Off)http://www.wallstreetoasis.com/forums/prudence-pays-off-for-jefferies%E2%80%94and-its-workers-0
(Bache Acquisition)http://www.thestreet.com/_yahoo/story/11076088/1/jefferies-commodities-push-earns-praise.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
(Institutional Investor) http://www.institutionalinvestor.com/Article/2866688/Jefferies-Still-Aiming-For-The-Bulge-Bracket.html?ArticleId=2866688
(Exceptional Students in Need)http://www.rochester.edu/news/show.php?id=3758
(Meet the Students)http://www.rochester.edu/pr/Review/V73N4/0404_handlers.html
(Scholars)http://www.rochester.edu/advancement/fastforward/v02/Special_Issue/
(Jef/GS) http://www.efinancialnews.com/story/2011-04-08/jefferies-commodities-buy
(Mass Mutual)http://www.bloomberg.com/news/2011-02-25/jefferies-massmutual-double-capital-in-commercial-finance-unit.html
(High Priest) http://www.efinancialnews.com/story/2011-04-08/jefferies-commodities-buy
(Luk letter 2010)http://www.gurufocus.com/news_print.php?id=128792
(Compensation) http://www.nytimes.com/2010/02/11/business/11bonus.html?scp=6&sq=jefferies&st=cse
(Gov of Singapore)http://www.swfinstitute.org/swf-news/singapore%E2%80%99s-gic-jefferies-group-and-loancore-capital-form-jv-real-estate-finance-company/
(GS/DLJ)http://www.breakingviews.com/2011/04/07/jefferies.aspx?sg=nytimes
(Best Place to Work) http://news.hereisthecity.com/news/business_news/10053.cntns
(Scholarship Fund) http://www.rochester.edu/news/show.php?id=3758
(Donor of the Day)http://online.wsj.com/article/SB10001424052748703439504576116491371935656.html
(Bache Acquisition) http://www.businessinsider.com/jeffries-richard-handler-prudential-500-million-offering-hires-2011
(Japan Earthquake Relief)http://www.tradersmagazine.com/news/jefferies-japan-earthquake-107308-1.html
(Best Kept Secret) http://news.hereisthecity.com/news/business_news/11829.cntns
(FT Bache) http://www.ft.com/cms/s/0/40353f2c-6127-11e0-8899-00144feab49a.html#axzz1J9Jd4Wur
(Most Innovative Investment Bank For Growth Companies) http://www.jefco.com/pdfs/articles/1010TheBanker.pdf
(Interview) http://news.hereisthecity.com/news/business_news/11919.cntns
(Compensation)http://blogs.wsj.com/deals/2011/04/22/step-aside-jamie-richard-handler-takes-the-wall-street-pay-crown/
(2011 Proxy Statement)http://www.jefferies.com/cositemgr.pl/html/InvestorRelations/SECFilings/index.shtml
(2010 Proxy Statement) http://jefferies.api.edgar-online.com/efx_dll/edgarpro.dll?FetchFilingHTML1?SessionID=JHGEHIghlejzyUE&ID=7171564
(BusinessWeek) http://www.businessweek.com/magazine/content/10_48/b4205062140481.htm
(JEF Stock vs GS vs MS) http://finance.yahoo.com/echarts?s=JEF#chart1:symbol=jef;range=my;compare=gs+ms;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined
(Jef Expansion) http://www.reuters.com/article/idUSN0335823920080903
(Employee Survey) http://news.hereisthecity.com/news/business_news/11784.cntns
(NY Apartment) http://therealdeal.com/newyork/articles/nyc-s-priciest-pads
(Jef Expansion via Financing) http://www.bloomberg.com/news/2010-11-03/jefferies-to-use-bonds-to-keep-expanding-hiring-amid-wall-street-s-slump.html
(Leucadia Opinion) http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_J/threadview?m=tm&bn=9995&tid=2377&mid=2377&tof=3&frt=2
(Haiti)http://www.nypost.com/p/blogs/thespread/jefferies_donates_day_commissions_sbo6ZDTICMQQgzZcSUUGlJ
(LA Times 2002) http://articles.latimes.com/2002/may/28/business/fi-jefferies28
(Compensation 2009) http://blogs.wsj.com/deals/2010/03/25/credit-suisse-ceo-is-worlds-2nd-highest-paid-banker-seriously/?KEYWORDS=jefferies
(Compensation 2009) http://blogs.wsj.com/deals/2010/02/05/blankfeins-9-million-bonus-is-pr-genius/
(Haiti) http://news.hereisthecity.com/news/business_news/9826.cntns
(Haiti) http://blog.aaronedelheit.com/2010/01/19/bravo-to-jefferies-company/
(Future of Investment Banking) http://www.theglasshammer.com/news/2008/09/18/the-future-of-investment-banking/
(Drexel)http://www.economist.com/node/17306419?story_id=17306419&fsrc=scn/tw/te/rss/pe
(Leucadia Opinon) http://www.gurufocus.com/news.php?id=89901
(Mortgage Business) http://www.housingwire.com/2008/04/23/jefferies-snaps-up-rbs-greenwich-execs-looks-to-grow-mbs-presence
(Asian Tsunami Relief)http://www.pionline.com/article/20050124/PRINTSUB/501240718/1022/TOC
(Fortune Magazine Most Admired Companies)http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docTag=201103140800BIZWIRE_USPRX____BW5598&feedID=600&press_symbol=172825
(Quotes) http://www.hedgeworld.com/blog/?p=489
(Contrarian) http://finance.qq.com/a/20080924/000426.htm
(Here Comes Jef)http://www.slideshare.net/samanthafox/here-comes-jefferies-here-comes-jefferies
(Compensation)http://www.whatsmyincome.com/2010/03/richard-handler-2009/
(Bravo Jef)http://blog.aaronedelheit.com/2010/01/19/bravo-to-jefferies-company/
(Rochester Investment Committee)http://www.rochester.edu/endowment/members.html
(Bill Clinton)http://query.nytimes.com/gst/fullpage.html?res=9B07E7D61138F930A15752C0A9639C8B63
(Haiti)http://www.jefferies.com/cositemgr.pl/html/OurFirm/NewsRoom/PressReleases/2010/201001191press.shtml
(Next Lehman/Bear)http://blogs.forbes.com/greatspeculations/2010/06/22/jefferies-could-be-the-new-lehman-or-bear-on-the-street/?partner=yahootix
(Blackberry Addiction)http://www.cnbc.com/id/17279714
(Compensation)http://blogs.wsj.com/deals/2010/02/05/bank-ceo-scorecard-whos-making-the-most-dough/
(Downturn Expansion)http://www.reuters.com/article/idUSN0335823920080903
(Stanford)http://www.gsb.stanford.edu/advisorycouncil/Handler.html
{Charity} http://findarticles.com/p/articles/mi_m0EIN/is_2006_May_2/ai_n26846330/
(Firm Quality)http://news.hereisthecity.com/news/business_news/9861.cntns
(Bank of the Year)http://www.prnewswire.com/news-releases/jefferies-named-2006-middle-market-investment-bank-of-the-year-by-thomson-financials-buyouts-magazine-58611642.html
(Forbes)Forbes article
(Compensation)http://www.forbes.com/lists/2008/12/lead_bestbosses08_Richard-B-Handler_N1WV.html
(Compensation)http://people.forbes.com/rankings/richard-b-handler/46304
(Brick Breaker) http://www.blackberryforums.com/blackberry-news/65424-blackberry-addicts-also-cant-resist-little-game.html
(Jumpin Jefferies) http://www.iinews.com/article.aspx?ArticleID=1035069
{Leucadia} http://www.gurufocus.com/news.php?id=53074
(Muckety)http://www.muckety.com/Richard-B-Handler/19949.muckety
(Stanford) http://www.gsb.stanford.edu/advisorycouncil/AdvisoryCouncilStanfordGSB.html
(Drexel) http://www.nytimes.com/2005/02/06/business/yourmoney/06drex.html
(Compensation Give Back)http://articles.latimes.com/2008/jan/18/business/fi-bonuses18
(Leadership Change)http://findarticles.com/p/articles/mi_m0EIN/is_2000_Oct_3/ai_65822953/
(Scholarships)http://www.rochester.edu/news/show.php?id=2882
(CEO Appointment)http://www.iddmagazine.com/issues/20001008/6146-1.html
(Earnings) http://seekingalpha.com/article/167645-jefferies-group-inc-q3-2009-earnings-call-transcript
Dick Bove Rochdale Securities Friday, May 28, 2010 Highlights The rating on Jefferies is being raised to Buy from Neutral. Yesterday I had the opportunity to meet with Richard Handler the CEO of Jefferies. Mr. Handler was wearing street clothes and operates out of an office that looks like it belongs to a junior analyst. The only luxury is a conference table that may have been purchased for $100 at a discount furniture store. Mr. Handler answers his own telephone calls and his office is situated outside the trading desk. The immediate impression is that this guy has no ego and that he is all about his business. You almost automatically want to invest your money with him. You begin to understand why there is no Merrill Lynch, Lehman, or Bear Stearns but that there is a Jefferies. Moreover, it becomes apparent why Jefferies never needed to become a bank holding company as some of its largest peers did and why Jefferies is growing so rapidly. More impressive is the fact that Mr. Handler has a total understanding of every aspect of his business. He knows and can immediately recall just about every number related to Jefferies and it appears most of his competitors. Unlike so many CEOs who claim a lack of knowledge of certain aspects of their company, Mr. Handler clearly knows and understands what is going on. Similar individuals might be Jamie Dimon, Richard Davis, James Gorman, and Brian Moynihan. To copy another’s phrase: “These guys get it.” Mr. Handler’s philosophy is relatively simple add capital at a measured pace (mid-teens ROE), add people, add geographies and add selective products. He is strongly wedded to a liquid and well capitalized balance sheet. He is risk averse with Jefferies money. He has selected his markets carefully to avoid competing with the giant firms and has found the niche where his company can compete successfully. The company is committed to customer flow businesses. It does not like the risks involved with proprietary investment activities and keeps them to a minimum. Mr. Handler likes joint ventures for a series of reasons and could do more. Bottom line it makes sense to put your money with a guy like this.
Meredith Whitney Meredith Whitney Advisory Group, LLC June 14, 2010 JEF CEO, Rich Handler, has consistently been opportunistic when the right deal or potential partner emerged. Urban legend has it that when Handler learned of the resignation of a well known and highly profitable investment banker from a major firm, he showed up in the banker’s driveway the very next day to lure him to JEF. As the expression goes, he is not just a little bit competitive. By being more defensive during most times, JEF affords the opportunity to be more aggressive at the right times.
[1] Jefferies 2011 Annual Proxy Statement; page 6. http://www.jefferies.com/cositemgr.pl/html/InvestorRelations/SECFilings/index.shtml
[2] University of Rochester press release 1/2/11 http://www.rochester.edu/news/show.php?id=3758
[3] Bloomberg Market Data
[4] WSJ Interview 4/23/10 http://www.wallstreetoasis.com/forums/prudence-pays-off-for-jefferies%E2%80%94and-its-workers-0
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