City firms are still digging their heads in the sand over sexual harassment
The Odey’s sexual harassment case is an example of how companies still think the “no comment” approach is the best one when they’re hit by scandal, no matter the consequences, writes Simon Neville
Media training for City types is almost always an exercise in explaining to terrified business leaders that not all journalists are like Jeremy Paxman. Most of the time, reporters want to understand more about what they are doing, rather than go out of their way to make them look stupid.
The natural instinct for companies when facing difficult questions is to keep their heads down and hope that the noise goes away. As Jack Doyle, former director of communications in Downing Street, famously wrote when the first press enquiries about Partygate were received: “just be robust and they’ll get bored”.
This strategy may seem like a safe approach but, as the government fallout showed, it has the potential to backfire enormously. Another example of the heads down approach reared into view over the past week at Odey Asset Management (OAM).
The Financial Times reported allegations made by 13 women of sexual assault or harassment by Crispin Odey over 25 years, claims Odey denies. But even with blaring headlines, several major institutions refused to comment on their dealings with the business and what their future relationship would look like.
The status quo “no comment” is hardly an option with a story like this. Either other fund managers would continue to work with OAM despite the allegations or they would cut ties in light of them. There was no middle ground and, too slowly, those institutions realised they had to distance themselves from him.
Two fund managers announced on Friday they would cut back their dealings with Odey’s funds and another went public this week.
The executive board at OAM took until the weekend to announce he would be leaving and the Financial Conduct Authority started answering questions on an investigation it was conducting after a deluge of calls.
But the allegations of Odey’s behaviour were not new. So, why did it take until now for these firms to act? Were these companies adopting the tried and tested method of “heads down, nothing to see here”? Had they seen the previous allegations – all denied by Odey – and decided that if it had blown over once, it could blow over again?
After Odey’s court case in 2021 over allegations of sexual harassment, where he was cleared of the charges, the Sunday Times reported separate allegations. Tortoise media also reported allegations on Odey prior to the FT story and laid out the claims from four women to the financier and his company back in November last year. All allegations were denied.
When the scandal of allegations of sexual harassment unfolded at the CBI, they were quickly cut off. Meanwhile, investors kept using his services and the media remained hooked to him for comments.
The cut off point at which allegations lead to actions has been all too arbitrary. When Tortoise, a niche publication, reported four allegations, Odey’s board were seemingly unphased. But thirteen more in the FT warranted taking a stand.
One of the managers to eventually cut ties with the fund only sold off its final holdings in Odey Swan – a fund run by Odey – after the FT allegations were first published. OAM has subsequently closed Odey’s Swan fund and stopped investors from withdrawing money from two others run by its subsidiary, Brook Asset Management, making it look more like a financial decision than a moral one.
Have those other institutions pulling money out said they are doing it on a point of principle, or because they are worried that if they don’t, they may be stuck from withdrawing it because the funds end up frozen for an unspecified period of time?
For all the talk of the City having its own MeToo movement and the rise of ESG, it remains the case that money talks. Still, companies tend to only act when it is in their financial interests.
If a company’s financial future is at stake, that’s when it will act. If there is even the smallest of chances a business can ride it out, then they seemingly will.
It is right and proper that allegations like those against Odey, or the CBI, or any other senior business leader, see the light of day. But if companies remain wedded to the idea that the best instinct when facing difficult questions is to say nothing, then nothing will change.