Stilwell Financial announced today that it will give more than 6% of the shares in Janus, its subsidiary, to key employees. Stilwell currently owns 98% of Janus and Janus employees own the remaining 2%.
Stilwell will give two equity grants to roughly 180 management employees at Janus, with most of it going to the firms 65-member investment team, Stilwell said. The first will be a one-time grant of 5% and the second will be a yearly grant through Janus long-term incentive program. The two grants will have an estimated combined value of between $300 and $350 million, Stilwell said.
"We believe that Stilwells shareholders benefit from programs that encourage superior investment performance and long-term stability at Janus," Landon Rowland, Stilwells CEO, said in a statement. "These equity awards are part of a compensation plan at Janus that provides tax-efficient incentives for key management employees that is, those individuals responsible for Janus growth and success."
Stilwell is also converting Janus to a limited liability company so that employee shareholders will avoid a double tax due to corporate dividends. Both the conversion and the initial grants are expected to occur within the next 60 days, Stilwell said.