Mike Gitlin

CEO of Capital Group

Claims

As speaker

Mentioned in

Key positions and views

Long-termism is paramount, reflected in the firm's compensation structure, which heavily weights eight-year performance over one-year results to align managers with client outcomes.

A strong, stable culture characterized by low employee attrition and long tenure is a key competitive advantage that leads to better investment results.

Technology and AI should be used to augment, not replace, human investment professionals by unlocking the value of proprietary, long-term data.

The asset management industry is consolidating, and firms must achieve scale and evolve with client needs to become one of the few indispensable partners clients choose to retain.

Compensation for investment professionals should be based purely on investment results, not on the amount of assets they manage, to ensure incentives are properly aligned.

Podcast consensus on Gitlin

Points of consensus

▶Both podcast appearances emphasize that Capital Group's 'Capital System,' established in 1958, is a core differentiator where analysts directly manage client assets, not just rate stocks.Apr 2026

▶Gitlin consistently states that the primary driver for quantitative compensation for investment professionals is their long-term, specifically eight-year, performance, not short-term results or assets under management.Apr 2026

▶In both sources, Gitlin highlights the firm's exceptionally low employee attrition rate, which is roughly half the industry average, with the rate for investment professionals being in the low single digits.Apr 2026

▶The strategic digitization of Capital Group's entire 94-year library of proprietary research reports is presented as a key technological advantage in both discussions.Apr 2026

Points of debate

▶There is a strategic tension between building capabilities internally versus partnering externally. Gitlin champions proprietary internal platforms like 'Capital Connect' and 'Career Hub', yet for a major expansion into private markets, the firm partnered with KKR to avoid cultural disruption.Apr 2026

▶A core challenge highlighted is maintaining a small-firm, intimate culture while operating at a massive scale. Gitlin describes breaking the equity division into three smaller, firewalled entities, yet this exists within a firm of 9,400 employees serving 20 million families.

▶Gitlin's narrative presents a dynamic between honoring a 94-year legacy and embracing disruptive technology. He frequently references foundational principles from 1931 and 1958 while simultaneously detailing the firm's deep investment in AI and Large Language Models.

▶The firm's approach to work-life balance shows a structured rather than flexible model. While a hybrid policy with Fridays at home is in place, the requirement for four days in the office contrasts with more flexible arrangements in the broader post-pandemic corporate world.Apr 2026

Key themes

▶Culture as a Competitive MoatApr 2026

Gitlin consistently frames Capital Group's culture as a core strategic asset. He points to the private, employee-owned structure, low attrition rates, long portfolio manager tenure (>20 years), and profit-sharing as key elements that foster stability and align employee interests with long-term client success.

This narrative positions the firm's culture not merely as a benefit for employees, but as a crucial differentiator that drives superior, consistent investment outcomes by retaining top talent and ensuring long-term focus.

▶The 'Capital System': A Philosophy of Long-Term, Aligned InvestingApr 2026

The 'Capital System' is a central theme, described as a multi-manager approach designed to reduce key-person risk. Core to this system is having analysts act as investors managing real money and compensating portfolio managers based on eight-year performance results, not assets managed.

Gitlin uses the 'Capital System' to argue that the firm's structure is fundamentally designed to combat the short-termism and misaligned incentives that can plague the asset management industry.

▶Augmenting Human Intellect with Proprietary Data and AIApr 2026

Gitlin details a deliberate technology strategy focused on leveraging the firm's unique assets. This includes digitizing a 94-year library of research reports into a platform called 'Capital Connect' and developing AI tools to help investors analyze past decisions and prepare for company meetings.

Capital Group's tech strategy, as described by Gitlin, is not about replacing human fund managers but about supercharging them with proprietary data and AI-driven insights, creating a defensible technological edge.

▶Navigating Industry ConsolidationApr 2026

A key market observation from Gitlin is that both wealth and institutional clients are actively shrinking the number of asset management partners they work with. He frames Capital Group's strategic pillars—including 'simplification and scale' and 'evolving with clients'—as direct responses to this trend.

This perspective suggests Capital Group's strategy is heavily influenced by the belief that the asset management industry is entering a 'winner-take-most' phase, requiring firms to be indispensable partners to a smaller roster of clients.

Source episodes

Sentiment over time

Not enough data for timeline

Changes over time

1931

Founder Jonathan Bell Lovelace establishes the principle that his family would not retain ownership of company stock beyond his grandchildren's generation, setting the stage for broad employee ownership.

1958

Capital Group launches its proprietary 'Capital System,' a multi-manager investment approach designed to eliminate key-person risk and empower analysts as investors.

Last 30 years

Gitlin references this period to highlight the S&P 500's resilience, noting its ~10% annualized return despite two 50% bear markets, underscoring the case for long-term investing.

Last Few Years

As part of a 'simplification and scale' initiative, Gitlin states the firm has reduced the number of committees reporting to its main oversight groups by 50%.

Last Year

Gitlin reports that Capital Group's investment professionals conducted 21,000 company meetings, indicating a high level of active, fundamental research.

Recent

Gitlin discusses the launch of 'Career Hub,' an internal AI-powered mobility platform, and a strategic partnership with KKR to enter private markets, reflecting a focus on talent and strategic growth.

Suggested prompts

How does Capital Group's eight-year compensation cycle and low attrition rate create a sustainable competitive advantage in an industry known for high turnover and short-term focus? &nearr;What are the potential risks and rewards of Capital Group's strategy to apply modern LLMs to its 94-year archive of proprietary research data? &nearr;Given Gitlin's observation that clients are consolidating asset managers, how does the firm's partnership with KKR in private markets position it to be a retained 'core' partner? &nearr;How does the private, employee-owned structure described by Gitlin enable Capital Group to make long-term investments in technology and people, especially during market downturns? &nearr;

Key concepts

Company Culture & Attrition 2 ep The Capital System 2 ep Compensation & Incentives 2 ep Technology, Data & AI 2 ep Corporate Strategy & Structure 2 ep Investment Performance 1 ep Client & Industry Trends 1 ep Company History & Ownership 1 ep

Notable quotes

“We don't pay on assets. We pay on investment results.”

Mike Gitlin · Mike Gitlin – The Century of Capital Group (EP.479)

“Not a single one of them is expanding the number of asset management companies they are working with. They're all shrinking them.”

Mike Gitlin · Mike Gitlin – The Century of Capital Group (EP.479)

“The number one driver of an analyst or portfolio manager's quantitative compensation is their eight-year number.”

Mike Gitlin · Mike Gitlin - CEO of Capital Group | Podcast | In Good Company | Norges Bank Investment Management

“We've digitized our entire library over 94 years. Every single report on every single stock ever written at Capital Group. That's a proprietary advantage.”

Mike Gitlin · Mike Gitlin - CEO of Capital Group | Podcast | In Good Company | Norges Bank Investment Management

Report last updated: Apr 21, 2026

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