Firm rocked as eight of its team defect

IRELAND’S biggest stockbroking firm Davy Stockbrokers was rocked yesterday by the defection of eight of its top private client management team to Morgan Stanley Quilter.

The eight managers, earning an average of 150,000 per annum plus substantial bonuses, walked out in a shock move yesterday morning. It is understood one of the principle reasons for the departure was resentment at Davy’s plans to cut bonuses for the private client management team.

The defectors can expect significantly higher bonuses with Morgan Stanley Quilter.

Led by private client director Brian Webber, the wealth managers accounted for tens of millions of private sector investments between them.

“If they were not, then Morgan Stanley are barking up the wrong tree,” commented one reliable market source.

Other managers to leave include Garret Stingemore, Donnacha Fox, Kevin Roynane, Owen Murphy and Paul Webber.

Last night Davy Stockbrokers was putting a brave face on the defections. Pat Cooney, deputy managing director of Davy’s private client business division, which employs a total of 120, said the resignations yesterday morning “were totally out of the blue and we had not been expecting anything like this”.

They are still employees of Davy Stockbrokers and “will serve out their month’s notice at home,” he said.

Mr Cooney denied their strategic importance within the wealth management team and said they accounted for a small number of the total of up to 45 people directly involved in wealth management for major private clients. “Nine of the 10 directors within the division are also still with us,” he said.

Davy, Goodbody and NCB stockbrokers are the three biggest brokers in the county in that order.

In terms of private client business Davy and Goodbody are close in terms of market share followed by NCB.

Davy is number one for institutional business while NCB is understood to hold the number two slot at the moment due to its primary focus on that market niche.

Ironically, last week institutional investors voted Robbie Kelleher and the Davy Research Team number one in Ireland in its 2003 All-European Research Team awards. This was the fourth consecutive year Davy’s had won the award.

In another separate defection, the Irish Examiner has learned that Dolmen Butler Briscoe has lost its three brokers from its Cork office, opened to fill the gap left by the collapse of W&R Morrogh. It is understood the brokers are to join Fexco’s stockbroking arm.