SAC Capital Advisors, the hedge-fund firm that’s facing federal insider-trading charges and a money-laundering lawsuit, is raising 2014 bonuses for its portfolio managers by 3.5% to help retain employees, a person with knowledge of the decision.
Bloomberg reports that the increase, announced to employees in meetings today, will be paid to equity, macroeconomic and quantitative-trading portfolio managers, said the person, who asked not to be identified because the discussions are private.
SAC portfolio managers are typically paid an annual bonus of 15% to 25% of the profits they generate from their investments.
SAC founder Steven A. Cohen last month sought to reassure employees that business will continue as usual after U.S. prosecutors indicted the 21-year-old firm and raised the prospect that its assets may be subject to forfeiture. Many of SAC’s employees have contacted friends, hedge funds and recruiters in a bid to land jobs next year when they expect the firm will need far fewer employees, people who have spoken to them said last month.
SAC told employees that it will guarantee a minimum compensation of $300,000 for its equity analysts for next year, the person said.
To access the complete Bloomberg article hit the link below