Voice of Experience: Elizabeth Philipp, Head of PIMCO New York

by Pamela Weinsaft (New York City)

Elizabeth Philipp, Head of PIMCO‘s New York office, has always loved numbers. “I know that sounds just so trite and generic,” she said, “but I loved math in high school. I excelled at it. I always liked the organization of numbers.”

That said, she went off to college at the University of Iowa with the intention of becoming either a pediatrician or a physical therapist. After taking a finance course in her second year at university, however, she quickly migrated back to math, and ultimately finance. “When I took my first finance course I just felt it was natural. I also felt that there was something about it that created a lot of independence. I just always felt that I could be very much in charge of my career destination if I chose finance and business. It is also very entrepreneurial.”

She added, “I didn’t know exactly what area of finance I would go into but I liked that there were many different avenues to pursue. That was the key. Whether it was running a company or doing more of the controller function or sales and trading, I thought it would be fascinating and evolutionary.”

She returned to her hometown of Chicago after graduating with her finance degree and started her career in finance as a trade assistant on the derivatives trading desk at Continental Bank. “I landed the position because someone was leaving. (I think her husband was relocating.) I started in a temporary role that turned permanent. What was great was that I had exposure immediately to financial instruments. [That opportunity] just reinforced my thought that there was no one path and this was going to be a very exciting career. It didn’t feel like it would get stale very quickly.”

Philipp cites this trade assistant position as one of the most influential in her career. “This initial group was an amazingly formative team in retrospect. So here is this old Midwestern bank, a male-dominated industry and organization, and within that organization was this group of 10 people, four of whom were women (including me), that, when I look back, was remarkably diverse for that time. It was an extremely smart and cohesive group, and very distinguished in terms of educational background. But what made the greatest impression on me was how collegial the team was. At 21 or 22, I was surrounded by mentors, many of whom I still speak to today.”

She stayed on the trade desk for a couple of years before moving to the credit training program to experience “the other side”. After a few years as a credit analyst, Philipp decided to return to business school, ultimately attending the fulltime program at the University of Chicago. “The thing that I loved about University of Chicago specifically was that it is so well known for finance fundamentals and I’m a believer that you really need to have your base in place and then you can expand your career and your growth,” explained Philipp.

Philipp originally thought she wanted to head out East after graduation to work at a firm on Wall Street but those plans changed after speaking with some people already on the Street. “Every time I interviewed with the Wall Street firms, the interviewer asked me where I envisioned myself in five to ten years. When it came to the Q&A time, I asked the same thing of the interviewers and, 8 times out of 10, they would say they planned to work on the Street for a couple more years and then move to the buy side. So I thought, why don’t I just go to the buy side? PIMCO allowed me to go directly to the spot that a lot of people were destined to go.”

That didn’t make moving to Newport Beach, California, PIMCO headquarters, any easier for her though. “I had no intention of going to California. California was where I went on vacation; I went there for fun and sun, not work. But I was interested in PIMCO because it was (and is) comprised of extremely bright people. I wanted the great Wall Street-type experience, but on the buy side.”

Having grown up with brothers, she wasn’t fazed by being the only woman in her PIMCO training class but, at the time she did feel like she had to take special pains to blend in. “I didn’t want to do anything that would bring anything other than gender neutrality to the thought process. Maybe it was my own pressure but I always felt like I needed to prove myself. There was no malicious intent but they weren’t seeing a lot of women when they looked around in the industry so this was sort of new to them; I did not want to do anything that would make them feel that this was anything out of the ordinary. My goal was to work hard, don’t disappoint and fit in.”

Philipp now questions whether she really had to work that hard to fit in. “There is this threat of overcompensating when you could be a little bit more yourself. That’s a challenge for women in the male-dominated businesses.”

In addition to her increasing client responsibility, Philipp began to take on managerial roles as well, in which she strove to “command respect” rather than “demand respect.” “At PIMCO, you add things to your plate. We are a very flat organization – people wear multiple hats and it was another hat I wanted to wear. So I supervised new people to the firm. I then ran the training program for a little while and continued to grow in that role.”

Several leadership positions and ten years later, she achieved the long sought-after goal of working in New York when she was tapped to be the head of the New York office. “When I was asked to head out to NY, the first thing I thought was ‘how ironic’ and how much had changed in the ten years since graduation from business school.” She and her husband, a teacher, decided that it was the right time to make the move.

She points to her work as Head of the NY office as her proudest career achievement to date. “When I joined the NY office in 2006,” Philipp said, “there were 38 people; now there are 75. The growth rate has been significant. And, the greatest challenge is also the greatest reward. I think people [in the New York office] feel fairly collegial and collaborative. And that to me is important. People want feedback and mentorship – they want to be operating to the best of their ability when facing challenges or trying to come up with solutions and they have to know there are people to whom they can go. I hope I’m a part of creating, furthering, and promoting that sort of environment.”

Philipp is also currently spearheading efforts to put together a women’s leadership network at PIMCO. Of the experience, she said, “It’s been evolutionary. It now has ‘buy in’ from the top of the organization, which is key. Just recognizing diversity and different cultural norms based on a much more diverse workforce is extremely important.”

To thrive in the industry, Philipp advises women: “Do what you like to do versus what will get you money. Take feedback and improve – we are never too old to learn.”

She acknowledged that women can sometimes face some specific challenges in finance. “This is so far from a 9-to-5 job. (It is hard to find an industry that is a 9-to-5 industry these days). Work-life balance in this economy and this industry specifically is an extreme challenge for everyone but it can be achieved. You can be in this business and have things outside, like a family or interests. They do require a mentality that you want to achieve both, but it is not barrier to entry or promotion.”

Philipp would know a thing or two about work-life fit challenges. She has a 2½-year- old son named Andrew. Philipp currently spends all her time outside of work with her son. She acknowledged how lucky she is that her husband, who is on hiatus from his teaching career, can stay home with their son so she can give her work the time and attention it requires as well. “It is really about how you work it out within your family.”

She added, “I know plenty of parents – men and women – who stay home full-time. They don’t have work-life balance in a different way. I think it is good for children to see active parents. The time that I’m with my son I’m not doing other things. I try to focus. It is all about having children see you being involved in things, including your career and community.”

Despite the sometimes hectic schedule, Philipp sees herself as staying on the buy side of asset management for the foreseeable future because she loves the personal connection it allows her with her clients. “The buy side is about relationships and partnering. This is an extremely personal business and, as such, it requires face-to-face meetings, frequent dialogue and really partnering with clients and colleagues because you are creating someone’s future…you really have to partner with them to provide solutions versus simply transacting.”