Ex-Janus manager sues for $3.8M in wages and compensation

A Denver district court is slated to hear the case Monday of a former employee of Janus Capital Management Group Inc. who charged the firm with breach of contract. The complaint, filed against the Denver-based firm’s subsidiary Janus Management Holdings Corp. by former portfolio manager Edward Keely of Douglas County, Colorado, alleged that Janus breached its contractual agreement when it announced a pay cut in October 2006. 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, and “the net results of these numerous unilateral changes was the retention by Janus of well over 50% of Mr. Keely’s wages and compensation,” the complaint said. He left Janus in 2007, according to the filing. Mr. Keely is seeking at least $3.8 million in compensatory damages. Janus has no comment on the case, according to a spokesman.