Bonus Watch '14: SAC Capital

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According to Bloomberg, SAC Capital announced today that it will be leaving a little extra in everyone's stocking next year.

SAC Capital Advisors LP, 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 percentage points to help retain employees, a person with knowledge of the decision. 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 percent to 25 percent of the profits they generate from their investments...SAC told employees today that it will guarantee a minimum compensation of $300,000 for its equity analysts for next year, the person said. A spokesman for the Stamford, Connecticut-based firm declined to comment.

SAC has long been known for paying extremely competitively, so nothing about this should be too shocking; the Big Guy figured out a long time ago that you gotta spend money to make money. Still, that it comes on the heels of reports employees are holding covert interviews with other hedge funds at various rest stops off of 95 suggests there may be some minor element of desperation to keep people happy. And maybe that SC is one analyst departure away from barricading the doors of the firm, dimming the lights, and using the words of others to make his case when his own fail him.

Please don't go
Please don't go
Please don't go
Please don't go
Please don't go
Please don't go
Please don't go
Please don't go

Babe, I love you so
I want you to know
That I'm going to miss your love
The minute you walk out that door Please don't go
Please don't go
Babe, I love you so
I want you to know
That I'm going to miss your love
The minute you walk out that door Please don't go
Don't go
Don't go away
Please don't go
Don't go
I'm begging you to stay If you leave
At least in my lifetime
I've had one dream come true
I was blessed to be loved
By someone as wonderful as you Please don't go
Don't go
Don't go away
Please don't go
Don't go
I'm begging you to stay Hey, hey, hey
Yeah Babe, I love you so
I, I want yo to know
That I'm going to miss your love
The minute you walk out that door

So please don't go
Don't go
Don't go away
Hey, hey, hey
I need your love
I'm down on my knees
Beggin' please, please, please
Don't go
Don't you hear me baby
Don't leave me now
Oh, no, no, no, no
Please don't go
I want you to know
That I, I, I, love you so

SAC Said To Raise 2014 Bonuses After Insider Charges [Bloomberg]
Please Don't Go [YouTube]

Related

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: