In Good Company with Nicolai Tangen

Episode Highlights: Mike Gitlin – CEO of Capital Group

Date: February 13, 2026
Host: Nicolai Tangen (CEO, Norges Bank Investment Management)
Guest: Mike Gitlin (President & CEO, Capital Group)

Main Theme

This episode features a concise but insightful conversation between Nicolai Tangen and Mike Gitlin, leader of Capital Group—a key player among the world’s largest investment managers. The focus is on Capital Group’s unique investment approach, its distinct company culture, leadership philosophy, and how these long-term principles shape both business practices and investment performance. The conversation also explores practical uses of AI and the crucial role of culture in building enduring investment organizations.

Key Discussion Points & Insights

1. Capital Group’s Identity and What Makes Them Unique

• Dual Focus: Capital Group manages money for clients ranging from individuals (via financial advisors) to large institutions like sovereign wealth funds and pension plans (00:48).
  • “At the end of the day, all of that is managing money for people.” — Mike Gitlin [00:54]
• Employee Ownership & Long-Term Perspective: Capital is employee-owned, allowing for focus on client interests and investment in long-term projects, even in volatile markets (01:21).
  • Example: They don’t face quarterly earnings pressures and can invest steadily (01:21).
  • “We have shareholders internally who understand that we’re investing in the business for the long term…we can still invest in that technology project that at another company might just get stopped.” — Gitlin [01:21]

2. The Capital System – “Secret Sauce” of Investment Approach

• Origins: Sparked in 1958 to eliminate key person risk after the founder’s health scare. Designed to prevent overreliance on a single manager (02:17).
• System Details:
  • Analysts are not just researchers—they manage real client assets.
  • Multiple portfolio managers collaborate on each portfolio.
  • Openness and lack of hierarchy; all ideas welcome and visible (03:23).
  • Encourages conviction, debate, and avoids groupthink.
  • “The analysts themselves are investors. They’re not credit raters or stock raters. They invest real client assets.” — Gitlin [02:28]
  • “All the portfolios are open so everybody can see them.…It doesn’t promote an environment of group think.” — Gitlin [03:32]

3. Longevity and Culture: What Keeps People at Capital Group

• Exceptional Tenure:
  • Average investment professional tenure >20 years (04:07).
  • Voluntary attrition among investment professionals remains “in the low single digits” (04:39).
    • “We tell people when we’re interviewing, if you don’t think you’re going to be here for your entire career, don’t come.” — Gitlin [04:31]
• Cultural Factors:
  • Deep sense of belonging, the appeal of employee ownership
  • Strong sense of purpose and community

4. Incentives for Long-Term Thinking

• Compensation Structure:
  • The principal metric for bonuses is the 8-year performance number. 5-year and 3-year performance also factor in, but 1-year is the smallest component (05:03).
    • “The number one driver of an analyst or portfolio manager’s quantitative compensation is their eight-year number.” — Gitlin [05:01]
    • “Don’t be a hedge fund manager, manage for the long term.” — Gitlin [05:13]
• Rationale:
  • Longer horizons foster conviction, reduce short-term pressure, and drive better results.
  • Tangen shares that NBIM moved from 3-year to 5-year performance metrics inspired partly by Capital (05:24).

5. Leveraging AI in Investment Management

• Operational Efficiency:
  • Automating commoditized tasks lets people focus on higher-value activities (06:15).
• Sales & Client Service:
  • “Prep Me” tool uses AI to prepare for meetings with financial advisors (06:30).
  • Instant translation for global client content.
• Investment Process:
  • Digitized 94 years of internal reports—now using AI to surface patterns and lessons from past market cycles (07:13).
    • “We’ve digitized our entire library…every single report on every single stock ever written at Capital Group. That’s a proprietary advantage.” — Gitlin [06:53]
    • “What mistakes have I made in the past in the similar environments…goes through all of my data managing money and it tells me things to be aware of as this cycle may be the same or different.” — Gitlin [07:25]

6. Recruitment Process and Commitment to Culture

• Intensive Process:
  • Hiring takes 6-12 months, with both parties evaluating each other (08:22).
    • “Have you ever lost a candidate because the process was too long?...But it’s worth it over the long run to take that time.” — Gitlin [08:29]
  • No one has veto power; decisions are collaborative and inclusive (08:44).
    • “Everyone has a voice, everyone can weigh in, but nobody has veto power.” — Gitlin [08:44]
• Cultural Priorities:
  • Core values: integrity, diverse perspectives, long-term orientation, community, and client focus (09:07).
    • “Our whole business is built on integrity. Diverse perspectives…Long term…community, but also the community they live in…And the fifth one is client focus.” — Gitlin [09:19]

Notable Quotes & Memorable Moments

• On Company Uniqueness:
  “We have shareholders internally who understand that we’re investing in the business for the long term.” — Gitlin [01:23]
• On Eliminating Key-Person Risk:
  “The analysts themselves are investors. They’re not credit raters or stock raters. They invest real client assets.” — Gitlin [02:28]
• On Culture and Tenure:
  “If you don’t think you’re going to be here for your entire career, don’t come.” — Gitlin [04:31]
• On Incentives:
  “The number one driver…is their eight-year number.” — Gitlin [05:01]
• On AI & Data:
  “We’ve digitized our entire library over 94 years…that’s a proprietary advantage.” — Gitlin [06:53]
• On Culture:
  “It’s everything that matters.” — Tangen [09:18]
  “Our whole business is built on integrity. Diverse perspectives…client focus.” — Gitlin [09:19]

Timestamps for Key Segments

• Introduction & Overview of Capital Group: [00:01] – [01:17]
• Unique Company Structure & Investment Philosophy: [01:17] – [04:07]
• Culture, Tenure, and Retention: [04:07] – [05:02]
• Long-Term Incentives and Metrics: [05:02] – [06:11]
• AI and Data Utilization: [06:11] – [08:07]
• Recruitment and Deep Dive on Culture: [08:07] – [09:34]

Summary

Mike Gitlin offers a rare look inside the philosophy and operational bedrock of Capital Group, emphasizing its multi-manager “capital system,” robust culture, and deliberate incentive structures aimed at fostering true long-termism. The conversation, marked by friendly humor and mutual respect, delivers actionable insights for anyone interested in high-integrity leadership, intentional organizational design, and adaptation in the investment world.