Thursday, May 2, 2013

SAC to Begin Clawing Back Compensation in Insider Trading Cases




As SAC Capital Advisors continues to face pressure over federal insider trading investigations, the hedge fund wants to investors to know that it can do better to stop problems from arising.

And to emphasize its point, SAC plans to bolster its compliance practices, according to a letter to investors sent by its founder, Steven A. Cohen.

Perhaps the most notable move is the firm’s institution of clawbacks for the deferred compensation of employees facing criminal or civil cases. Should an employee leave SAC during an investigation, his or her payouts will be withheld. If the case leads to sanctions or other punishments, the compensation will not be paid out….

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