You may remember Steven A. Cohen as the billionaire who just barely escaped total destruction after it became clear that his hedge fund was rife with insider trading. Now he has a new identity: paragon of business ethics!
The insider trading allegations against Cohen were so compelling that he entirely shut down his enormous hedge fund, SAC Capital, rebranded it as "Point72," and decided that his firm would now only manage his own personal multibillion-dollar fortune—much of which was derived from illegal insider trading, allegedly! The point is, Steven Cohen now has a strong, new-found appreciation of ethics. How strong? Well, how does four percent strike you, my man? Bloomberg reports:
Starting next year, some of the managers and analysts at Stamford, Connecticut-based Point72 Asset Management LP can earn an extra bonus of as much as 4 percent of compensation if they demonstrate adherence to the firm's compliance policy and ethical standards, contributions to the community and repeated strong investment performance, Mark Herr, a spokesman for the firm, said yesterday in a telephone interview.
That is what I call "Putting a tiny amount of your ill-gotten gains where your mouth is!" Employees who are ethical will be entitled to up to 104% of their pay. Employees who are not ethical will, presumably, be entitled to only 100% of their pay.