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Janus to pay $4.8M for breach of contract over pay cut

A Denver district court has ruled that Janus Capital Group Inc. must pay a former portfolio manager $4.8 million finding that the company committed breach of contract, according to Bloomberg.

A Denver district court has ruled that Janus Capital Group Inc. must pay a former portfolio manager $4.8 million finding that the company committed breach of contract, according to Bloomberg.
Edward Keely of Douglas County, Colorado, filed a complaint against the Denver-based firm’s Janus Management Holdings Corp. subsidiary, alleging that Janus breached its contractual agreement when it announced a pay cut in October 2006.
The complaint also claimed that Janus reduced the bonus pool and the percentage of incentive payments that would be paid in cash to 67%, from 75%.
Mr. Keely signed compensation and severance contracts with the firm in December 2004.
His pay was reduced in 2006 by about 65%, the court found, according to the report.
Mr. Keely left the firm in 2007.
The jurors found in favor of him on the contract and fraud claims but didn’t grant punitive damages, according to Bloomberg.
“We are disappointed with the outcome of the trial, but we stand by our decision to put investors and stockholders first,” said Janus spokesman James Aber.
“We worked hard to align incentives for portfolio manages to deliver strong long-term results while also delivering on our commitment to our public company stockholders to be a growing, profitable firm,” he said.