PIMCO has introduced retention bonuses

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A 'Special Performance Award' comes on top of bonus and salary policies already in place.

Pacific Investment Management Co has (PIMCO) introduced $279m award program to retain top talent after the surprise departure of Bill Gross.

Bloomberg News reports that Pimco, a unit of Allianz SE, is seeking to reassure staff and clients rattled by the exit of its chief investment officer and co-founder. Investors have pulled billions of dollars from the firm’s funds since Gross, 70, resigned in September to join Janus Capital Group.

The new bonus plan applies to 'all employees that are not participating in the Pimco profit pool', including senior portfolio managers below the level of managing director, Allianz Chief Financial Officer Dieter Wemmer said on a conference call today.

The 'Special Performance Award' comes on top of bonus and salary policies already in place. It consists of a cash award to be granted in the fourth quarter and paid over the next 12 to 30 months, Allianz said today in its quarterly report. The bonus is expected to cost an average of $41.2m before taxes for each of the next five quarters and $12.5m each for the remaining six quarters, the insurer said.

To access the complete Bloomberg News article hit the link below:

Pimco Offers Special Post-Gross Bonus to Retain Talent

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