Janus paid lofty bonuses to its senior executives last year despite the company's abysmal corporate governance during that period
During the bygone runup of technology stocks, Janus was a money machine for its investors, but now the company is mainly delivering strong profits to its senior executives. Despite losing millions of dollars to shareholder defections and regulatory fines since September, Janus approved a $3.39 million stock bonus in 2003 for Mark Whiston, the firm's chief executive, who also received a $600,000 base salary last year, Reuters reports.
Whiston's earnings were part of a generous $10 million compensation package awarded last year to himself and three other Janus senior officials, according to company filings with The Securities and Exchange Commission. The fat paychecks are being handed out at a time when the company has pledged $31.5 million to compensate shareholders for losses stemming from improper trading in some of its funds. Janus was one of the original four asset managers named in the first mutual fund probes beginning in September. Whiston has publicly declined to comment on the scandal.
Janus Executive Vice President Lars Sodenberg, who agreed in April to a 90-day leave of absence, netted $1.79 last year in addition to his $150,000 salary. Sodenberg was in charge of the company's sales to institutional investors. In addition, Girard Miller, who joined Janus as ceo in June, received a $1.3 million bonus in addition to his $250,000 salary. The SEC filings also said that Gary Black, who became president and CEO on March 15, is guaranteed a $500,000 salary and $4 million bonus in 2004 and 2005.