• 09 Jan 2013 at 12:01 PM
  • bonuses

Bonus Watch ’13: SAC Capital

Back in December, a bunch of recruiters made the bold claim that following the government’s charges against former portfolio manager Mathew Martoma, SAC Capital employees were, if not giving them the time of day, at least waiting a few seconds longer before hanging up the phone. At another firm, the turn events probably would have been cause for concern that the staff would be abandoning ship in short order.  Since we’re talking about SAC, though, we figured not only would The Big Guy & Co not be concerned about the prospect of mass resignations but would take the opportunity to remind people that this is SAC Capital and at SAC Capital, they don’t receive resignation letters, they only issue pink slips, lest anyone be getting any ideas. So you can imagine our shock and horror to find out this happened:

SAC Capital Advisors LP is raising bonuses for its portfolio managers by 3 percentage points to help retain employees as the U.S. government’s insider-trading probe moves closer to Steven A. Cohen’s $14 billion hedge fund, according to a person familiar with the matter. The bonus increase announced yesterday will be paid to equity, macro and commodity portfolio managers, said the person who asked not to be named because the information is private. The firm’s portfolio managers are typically paid an annual bonus of about 15 percent to 25 percent of the profits they generate from their investments, according to another person.

Buying loyalty? What’s next, a fee cut? This is not how you do things at a firm that charges 3&50. How you do things is you tell anyone asking for a pay raise that they have 10 seconds to get back to their desk and stay there “until I tell you to leave/fire you.”

SAC Capital Said to Raise Bonuses Amid U.S. Insider Probe [Bloomberg]

Comments (11)

  1. Posted by Guest | January 9, 2013 at 12:12 PM

    +3% and how much has the retainer fee at Jacoby and Meyers been bumped up by?

  2. Posted by Guest | January 9, 2013 at 12:14 PM

    Lucky for the PMs advised by phone that if he tries to renege on the deal, they can always for back to the FBI wiretap for confirmation.

  3. Posted by guest | January 9, 2013 at 1:43 PM

    Divvying up the silverware on the Titantic, gotta love it!

  4. Posted by guest | January 9, 2013 at 2:44 PM

    +3 percentage POINTS is +~14-20%.

  5. Posted by Formaldehyde Shark | January 9, 2013 at 2:47 PM

    So, snack time's coming?

  6. Posted by TitsWilson | January 9, 2013 at 2:58 PM

    Interesting analogy. Getting paid 10's of millions, never having to work again = becoming a lifeless popsicle bobbing in the Atlantic Ocean?

  7. Posted by James S. Cramer | January 9, 2013 at 4:57 PM

    WHY IS THIS SAC STORY SO IMPORTANT TO PEOPLE?! BACK AT THE OLE' CRAMER & CO HEDGE FUND WE GOT LIKE *COUGH* WAAAAAAAAAY BETTER RETURNS!!!! LOL!!! I KNOW RIGHT?!!?! HOW COCKANAMY!!!! IF I WERE THE SAC I WOULD WIPE MY "LITTLE SAC" ALL OVER SAC CAPITALS SORRY FACE.

    UNTIL NEXT TIME.

    LOVE,
    JIM "MAD DAWG" CRAMUHHHH

  8. Posted by James S. Cramer | January 9, 2013 at 4:59 PM

    OOPS SKEE DADDY I MEAN TO SAY "IF I WERE THE SEC I WOULD WIPE MY "LITTLE SAC" ON THEM..

    I KNOW I KNOW… THAT WAS PRETTY COCKANAMY I'M SORRY, BUT HEY WHILE YOU'RE READING THIS… REMEMBER FB IS A BUY BUY BUY!

  9. Posted by hmjjbe | January 9, 2013 at 5:46 PM

    the trade-off was worth it for Steve…

    I do solemnly swear that I am a rogue trader and Steven A Cohen was not aware of inside trades I've made in the past, inside trades I've made today or inside trades I may or may not but probably will execute in the future.

    signed,
    (recipient of 3% bonus increase)

  10. Posted by DBC | January 9, 2013 at 5:59 PM

    Take your meds. Actually, nevermind, you won't need them if you did everyone a favor and killed yourself.

    -DB Commentariat

  11. Posted by sohbet | May 12, 2013 at 6:31 PM

    telling these little stories, here's a good idea: Have a point. It makes it so much more interesting for the listener.