The revolving door at Janus
has been traced to the change in portfolio manager compensation implemented by CEO Gary Black
, and the switch has also given rise to two lawsuits against the Denver-based firm. Black, however, said the change the pay scheme was the right thing to do. "We did tie the overall compensation to the overall business model," he told The Denver Post
The discretionary pay of a Janus portfolio manager in now more tied to measures such as the manager is mentoring younger employees, whether they are driving the research debate and whether they are working with the salesforce. Black said the change wasn't mainly about trimming costs, and added that portfolio manager compensation at Janus, in fact, increased in 2007 compared to 2006.
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