SAC Pays Bonus, Loosens Deferred-Compensation Rules

Mar 5 2014 | 1:21pm ET

SAC Capital Advisors has changed its deferred-compensation rules and made a last big payout to staff as it prepares to become a family office next month.

SAC paid out bonuses and deferred compensation on Friday, The Wall Street Journal reports, opening the door for more of the troubled firm’s 850 employees to leave. But SAC also loosened its policies on deferred compensation for employees who remain with it through the end of this year, in an attempt to hold on to talent.

SAC defers a quarter of compensation, paying it out over a three-year period. Previously, that money would vest over three years—and employees who left the firm would forfeit the unvested portion of their pay. From now on, however, the deferred compensation will vest immediately, although it will still be paid out over three years.

According to the Journal, in spite of its reduced role as a family office, SAC—which will change its name next month—is still hiring, seeking both junior and senior investment professionals.

SAC has pleaded guilty to insider-trading and agreed to return outside capital, as part of a $1.8 billion settlement with the government. That deal is expected to go before a federal judge for approval next Friday.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...