Saturday, 23 August 2014
Last updated 1 day ago
Jan 3 2014 | 1:26pm ET
Phil Falcone may not be a hedge-fund manager anymore, but he'll still be paid handsomely next year.
The Harbinger Capital Management chief, who accepted a ban from the hedge-fund industry last year, could be paid more than $21 million next year as chairman and CEO of Harbinger Group, the permanent-capital vehicle he set up in 2009. While Falcone's deal with the SEC bans him from managing a hedge fund, he was permitted to continue to run the listed entity.
Falcone will receive a $500,000 base salary for the fiscal year ending Sept. 30 of this year, and is eligible for up to $20.75 million in bonuses, according to a regulatory filing last month by Harbinger Group.
He could also be in line for a big stock grant: Harbinger Group said it was "negotiating the terms and conditions of an employment agreement with Mr. Falcone and anticipates granting Mr. Falcone an initial equity award."
Falcone's pay for next year is in line with that received last year by Harbinger Group President Omar Asali, who received $20.5 million in total compensation.
Falcone accepted the five-year ban from the hedge fund industry and an $18 million fine in August to settle allegations that took an improper loan from Harbinger's hedge funds to pay his taxes, granted Goldman Sachs preferential redemption treatment and manipulated markets. He was forced to admit wrongdoing as part of the deal with the Securities and Exchange Commission.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note