A pair of senior executives of the U.S. asset management business of Julius Baer, the Swiss wealth business, earned compensation packages worth $120 million in the first nine months of 2007, according to a regulatory filing ahead of the unit's flotation planned for this year.
Richard Pell, chief executive and chief investment officer of Julius Baer Investment Management, and Rudolph-Riad Younes, head of international equity, together earned compensation packages worth $120 million for the first three quarters of last year, causing pretax earnings to be reduced by 57% to $92 million, said an analyst.
The details of the payouts were revealed in a filing with the Securities and Exchange Commission. Julius Baer has filed to divest its U.S. asset management division via an initial public offering, planned to raise up to $1 billion at some point this year. Once public, the U.S. asset management division will be renamed Artio Global Investors and will be listed on the New York Stock Exchange.
In 2006, Pell and Younes earned a combined $100 million accounting for 56% of pretax earnings, $57 million in 2005 and $12 million in 2004.