Janus has changed the way it pays its portfolio managers over the last few years, and expects the changes to continue, the Wall Street Journal reported on Monday. The information is based on a mix of unnamed people familiar with the matter and company spokespeople.

In 2001 and 2002, company spokeswoman Jane Ingalls said manager compensation fell due to poor performance of funds. In 2003, Ingalls said that most Janus managers agreed to lower pay if their fund's performance dropped at least 10 percent for four or more quarters, consecutively.

Currently, the firm pays managers responsible for at least $1.5 billion in assets a $1 million base salary plus a bonus of more than two percent of total management fees received.

And that's not all: performance pay, based one to three years of history, runs from a low of 0.5 percent of management fees for relatively mean-performing funds in the top 45 percent of peer funds, to more than 9 percent for star performers in the top 15 percent of peer funds. Star performers must also beat benchmarks.

"Competitive performance will matter more and that assets will matter less," Gary Black, chief investment officer at Janus told the Journal. 

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