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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Expert Says Scale Of Baillon Classic Car Find Rare

Dec 29 2014 | 3:40am ET

Forget about hedge funds, buying rare, classic cars could be called the ultimate...

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

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

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.