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.