Janus Sets $31.5 Million Repayment to Investors

The board of fund directors announced other steps to shore up Janus' compliance procedures, including recommending an independent compliance officer. "These initiatives reflect our goal of adopting high standards of corporate governance," said Whiston.

Meanwhile, with the appointment of Scheid, Whiston waived his right to become chairman and forfeited a cash severance payment of $20 million to $23 million. Under his amended contract, Whiston's bonus has been reduced and will be paid in stock rather than cash. His potential severance package was reduced, and he received a stock grant of 236,000 shares, which vest over the next 12 to 18 months. The measures were made to "further align [Whiston's] interests with those of public stockholders," the company said.

Janus' stock, still down about two-thirds from the bear market that caught the majority of its growth-oriented funds blindsided, has declined in the wake of the scandal. The stock was up 1.8% to $15.10 Friday morning. While Janus still lacks a chief investment officer, has suffered from underperforming funds, has lost many top managers and remains enmeshed in the scandal, some value-oriented money managers think the firm's stock is one of the best bargains in the market.

If that proves true, the most closely aligned Janus stock investors may be quite happy 18 months from now.