Saturday, 23 July 2016
Last updated 14 hours ago
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.