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: High Conviction, Low Correlation

Oct 30 2014 | 7:35am ET

Acadian Asset Management's numbers are big: over $70 billion in assets under management...

Lifestyle

Ex-Hedgie Steyer Gives $56M To Climate Action Super PAC

Oct 28 2014 | 9:23am ET

Retired Farallon Capital founder Tom Steyer has poured almost $56 million into his...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.