SAC Boosts Bonuses To Hold On To Staff

Sep 5 2013 | 1:22pm ET

SAC Capital Advisors is raising bonuses and guaranteeing pay in a bid to hold on to staff who may be inclined to leave a firm facing criminal insider-trading charges.

The hedge fund told long/short equity, macro and quantitative portfolio managers that they'd receive an automatic 3.5% bonus next year if they commit to remain with the firm. It is the second time that SAC has promised more money to stave off an exodus; following former portfolio manager Mathew Martoma's November arrest, it promised stock, macro and commodity managers a 3% bump.

SAC portfolio managers already typically receive bonuses totaling 15% to 25% of the profits they make.

SAC also told stock analysts that they would be paid a minimum of $300,000 next year.

SAC has about 1,000 employees, many of whom have begun casting about for new jobs following the firm's indictment in July. Clients have pulled substantially all outside capital from the firm, and SAC is said to be mulling a future as a family office, although it has assured its staff that it does not plan massive job cuts.


In Depth

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note