Janus Execs Get a Nice Juicy Stake

Janus funds are on a losing streak, but parent Stilwell Financial (SV Quote) is dangling an equity carrot to keep the managers who made it happen on board.

Over the next two months about 180 Janus employees will receive a cumulative 5% stake in the Denver firm, with most going to its 65-member investment team. An additional 1% Janus Capital stake will be divvied out in annual grants tied to performance targets. While the majority of Janus' stock funds still have enviable long-term track records, their tech-heavy portfolios put them in the crosshairs of the Nasdaq's collapse over the past two years.

The move is an effort to appease restive Janus employees, who have long chafed at being stuck under the Stilwell umbrella along with less high-faluting outfits like the Berger funds. Industry observers have often speculated that the chill between Janus and Stilwell might spur an exodus by the firm's celebrated investment staff, which includes high-profile growth managers like Helen Young Hayes ((JAWWX Quote)Janus Worldwide), Warren Lammert ((JAMRX Quote)Janus Mercury) and Scott Schoelzel ((JAVLX Quote)Janus Twenty). ...