While it’s not yet clear how investors will fare, we’re told that Raj-Raj is taking care of his employees. The Galleon team will be paid bonuses based on the fund performance at the date of shutdown, plus two months severance, plus benefits. A Galleon spokesman confirmed the plan but declined to comment further.
A top New York-based hedge fund manager told us, “For a fund that’s shutting down, that’s very generous.” Agreed! (If you have any estimates or guesstimates for bonuses at hedge funds not expecting to shut down, let us know.)
Update: Bonus terms are the same as the Portfolio Managers committed to before Galleon was forced to unwind their hedge funds. Part of these terms included a discretionary component – meaning Omerta (a mafia term for code of silence) or Raj-Raj can give staffers whatever he wants to keep their memories fuzzy.
Good scoop.
I did not see that coming.
Thanks Rich Uncle Raj Pennybags, but I’d like the “stay out of jail” card instead.
Thanks Rich Uncle Raj Pennybags, but I’d like the “stay out of jail” card instead.
@3/4 not all of his employees are going to jail you realize?
2 and 20 to insider trade, gotta love Wall Street
Raj will distribute the checks while rapping Notorious BIG “Mo’ Money Mo’ Problems”
Everyone knows GG bonus payments are made in sticky fifties.
Buhl comes out swinging!
are they hiring?
@10 = j. chiang
WTF is a Teri Buhl?
Too bad they aren’t still long AMD
@10 – Yes. I just received an offer from to work in Researc.h
- Jeffrey Chiang
Not saying Raj hasn’t a heart of gold, but dollars have been known to buy silence too. Supborn perjury even.
@12 That joke was Teri Buhl
payment will be madein 3com calls purchased on a hunch before this whole legal tangle erupted
Yeah, you need to be generous in order to get everybody to sign those severance papers that say you will forever keep your mouth shut.
Anyone want to bet who will steal Dealbreaker’s scoop first? Pulliam at WSJ or Kouwe at NYT.
I’m betting WSJ.
@18 knows what’s up.
too insider, didn’t trade.
No one cares about this. It is part of the severance package that was reported last week.
@22 where?
@23 http://dealbook.blogs.nytimes.com/2009/11/04/galleon-moves-its-portfolios-to-nearly-all-cash/
TERI BUHL LIES
SHAME ON DEALBREAKER AGAIN AND AGAIN
@24 Right, that was in the investor letter they sent last week.
The letter said they were trying to outplace employees.
You know what’s not in the letter and what’s not in the dealbook post? Anything about bonuses and terms of severance.
FAIL.
-not 23, not Teri Buhl
@26 Um, hello there are no terms of severance in this post either. Just saying employees will get bonuses based on the performance of the fund means nothing. What are the terms? Are they different from the ones the PMs agreed on before the firm shut down. These are important questions and I wish the author could have taken a bit more time to dig into the details instead of just throwing something up to be first of the mark.
@27 = Kouwe
BTW – every breaking news reporters job is to be first. They can always update latter.
Dealbreaker nailed this scoop!
@27 Good Questions. I updated the story-so now you know everything I do.
On another note to all Dealbreaker readers: I rarely comment on a story but if I do… I always use my full name.
Thanks for reading,
TB
KnFel6 Thanks-a-mundo for the blog.Really thank you! Fantastic.
Major thankies for the blog post.Thanks Again. Cool.