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

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...