Stilwell's Financial Thomas Bailey, Janus' chief executive officer, is handing over another 600,000 shares of Janus stock. The purchase raises Stilwell's stake in the firm to 88.7 percent.

"This purchase will provide Stilwell with an additional block of Janus stock that can be used to attract managerial talent, to provide greater incentives for key personnel at Janus and to assure management continuity," said Landon H. Rowland, president and chief executive officer of Stilwell, in a statement.

Talk has circulated that many Janus portfolio managers will be defecting from the firm after bonus pay-outs later this quarter. Could the timing of Bailey's divestment indicate strategic incentivization with Janus stock?

While Rowland's general intention is clear, a Stilwell spokesman refused to comment on the strategic use of the stock in the short term.

"I don't think there's anything mysterious about it," said Burt Greenwald, a Philadelphia-based industry consultant. "I think that Bailey is getting to the point where he's doing some estate planning. At the same time, they have a challenge to retain key people. Those people at Janus are still equally sought-after. I would think that they're going to redistribute those shares to their key players."

Greenwald pointed out that the Janus stock, at its present depressed value, would be particularly attractive to portfolio managers.

Janus spokesperson Blair Johnson said that he was unaware of any plans to offer incentives beyond the standard bonuses to the investment managers. Johnson insisted that Janus portfolio managers have other reasons to stay put.

"Our portfolio managers have a lot of freedom to run their own franchises," he said. "It's that freedom and the collaborative spirit that are the keys to why we have an unprecedented record of retaining our portfolio managers."

Bailey had sold Stilwell 600,000 shares in 1995 and retains an additional lot of 600,000, giving him approximately 6% of Janus's stock. That figure exceeds the 5% ownership necessary to maintain control of the firm. Clearly, Bailey isn't passing the reins yet, but without a successor in place, he couldn't reasonably do so.

"I think they have been looking for a chief operating officer who would be more administrative than investment-oriented," said Greenwald. "I think they've had a search out for that for some time." 

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