MutualFundWire.com: Shareholders Scold Janus as Weil Plans a Turnaround

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Tuesday, May 31, 2011

Shareholders Scold Janus as Weil Plans a Turnaround

Fundsters worried about the implications of the new Dodd-Frank financial reform law may want to keep an eye on Janus [see profile]. Last month, under the new law, Janus' shareholders voted (82.7 million shares to 59.9 million shares) to reject the pay package for CEO Dick Weil and four other top execs. The move comes as Janus continues to suffer net outflows and before P&I claimed Weil $20.3 million pay package put him second place in pay among CEOs at publicly traded money managers [see The MFWire, 5/16/2011]. ($10 million of that was a signing bonus of restricted stock that takes three years to vest [see filing].)

Dick Weil
Janus Capital Group
CEO

P&I and Reuters both reported on Janus' recent woes, noting the irony of the non-binding Janus "say-on-pay" vote, given that Janus is one of the most aggressive supporters of such resolutions when voted on for its funds' portfolio companies.

"We know that we haven't yet delivered the results that we need to deliver," Weil told P&I.

A number of insiders weighed in for the Reuters piece, including: Michael Cuggino, president and PM for Permanent Portfolio Funds; Lisa Lindsley of the American Federation of State, County and Municipal Employees labor union; Jeff Marshall, co-founder of Moxyvote.com; and John Miller, PM at Ariel Investments (a big Janus shareholder). P&I, meanwhile, spoke to Weil himself, as well as: Michael Kim, analyst at Sandler O'Neill & Partners; Miller of Ariel; and Greg Warren, senior analyst at Morningstar.

Printed from: MFWire.com/story.asp?s=36932

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