Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:TCW Employees Gain a 20 Percent Stake and a Bigger Slice of Fees Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, May 03, 2010

TCW Employees Gain a 20 Percent Stake and a Bigger Slice of Fees

News summary by MFWire's editors

Marc Stern is revamping the way TCW Group compensates many of its employees. In an interview with Pensions & Investments' Randy Diamond, Stern talked about a new incentive plan whereby investment professionals, marketers and administrative staff (175 out of 700 employees) will be eligible for gaining a stake in the company (up to 20 percent total) and a bigger chunk of their fees. Meanwhile, a key team appears to be prepping to spin off in a decade.

"Hopefully, we will make some people wealthy along the way," said Stern, vice chair and CEO of Los Angeles-based TCW. "In relation to equity, the calculation that a firm like SG [Societe Generale, TCW's parent] does is that if we motivate and incentivize our people, we keep the good people."

TCW's moves come in the wake of the December ouster of TCW fixed income bigshot Jeff Gundlach, who then started up his own DoubleLine Capital and drew over a number of his staff, even as TCW sued Gundlach and bought rival MetWest.

TCW employees will receive restricted shares of the firm's stock, convertible over five years of vesting, and sources told P&I that the key energy/infrastructure and small-cap/midcap growth teams will keep more than 50 percent and almost 50 percent of their fees, respectively. (Stern declined to talk fee numbers, and an unnamed TCW official disputed the supposed small-cap/midcap team fee change.)

TCW also confirmed that, over the next ten years, the energy/infrastructure team (which includes group managing director Blair Thomas and managing directors Kurt Talbot and Randall Wade) will slowly take a bigger piece of its fee, until taking 100 percent in 2020, which sounds like a spin-off.

"What we negotiated was long-term relaitonship that goes through 2020 where, over the period of time, we will be in business together, during that time they will become more self-sufficient and operationally independent," Stern reportedly said.

Stern also confirmed that he's still negotiating with the TCW/Crescent Mezzanine team, led by managing director Mark Attanasio

Edited by: Neil Anderson, Managing Editor


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use