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

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Maglan Capital: Some Lessons Learned From Puerto Rico

Jul 13 2017 | 8:00pm ET

Although Maglan Capital has not been invested in Puerto Rico for more than three...

 

From the current issue of