Canaccord Genuity Group Inc. has parted ways with three senior staffers, including a high-ranking investment banker.
Jens Mayer, Andrew Jappy and Peter Virvilis – all long-serving Canaccord employees – are the latest to leave the firm, sources said.
Canaccord acquired Genuity Capital Markets in 2010, but over time a reverse takeover of sorts has taken place whereby Genuity staffers have taken on increasingly senior roles and many Canaccord employees have left.
Mr. Mayer was global co-head of investment banking and had been with Canaccord for 16 years.
Mr. Jappy had been responsible for information technology. He joined Canaccord in the mid-1990s.
Mr. Virvilis was head of operations and a 29-year veteran. He oversaw the independent brokerage's back office operations.
Last month, The Globe and Mail reported that Scott Davidson, global head of corporate development and strategy who had been with Canaccord since 2002, left the company.
The balance of power swung decisively away from the old guard and toward Genuity following the sudden death of chief executive officer Paul Reynolds last year. David Kassie, a veteran of Genuity, was installed as interim CEO soon after. Then in September, Dan Daviau – also formerly of Genuity – was named as permanent CEO.
Canaccord and many other independent brokerages are in the midst of a brutal operating environment. With key commodities such as crude oil and metals in painful and protracted bear markets, Canaccord and rival firm GMP Capital Inc. have posted losses in three out of the past four quarters. Last month, GMP Capital unveiled a drastic restructuring, including cutting one-quarter of its staff.
Canaccord is due to report its fiscal third-quarter results on Thursday. On Tuesday, TD Securities analyst Graham Ryding cut his rating on the stock to hold from buy. One of Mr. Ryding's concerns is that a significant goodwill writedown may be coming in segments of Canaccord's business. Canaccord's shares were down 3.5 per cent on Tuesday and have fallen almost 50 per cent since mid-June.
Canaccord did not respond to a request for comment.