SAC Pays Bonus, Loosens Deferred-Compensation Rules

Mar 5 2014 | 2:21pm 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

Q&A: Decathlon Capital On Revenue-Based Alternative Lending

Oct 30 2017 | 3:49pm ET

The explosion in private credit activity since the end of the financial crisis is...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Saxby: Not All EBITDA Is Created Equal

Nov 30 2017 | 8:02pm ET

Record levels of dry powder are driving competition among private equity firms to...