Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Bond star Bill Gross gets $81m in Pimco peace deal

1 Comment
Bond star Bill Gross gets $81m in Pimco peace deal

The world's most famous bond fund manager, Bill Gross, has ended his legal battle with Pimco, his previous employer, with the Californian asset manager paying its founder and former star $81 million (£64.4 million).

Gross left the firm in acrimonious circumstances in September 2014 and in October 2015 sued Pimco for $200 million over what he claimed were unpaid bonuses.

He famously left a handwritten note announcing his departure and joined rival firm Janus Capital Management, the Denver, Colorado-based firm currently merging with British fund manager Henderson Global Investors.

Gross claimed he was pushed out of the company by fellow fund managers who wanted a larger share of the bonus pool. Pimco disputed this and after much legal wrangling the case was set to be heard in September.

The two sides have now reached a private agreement outside of court, which they described in a joint statement as 'amicable'.

Citywire understands that Pimco has agreed to pay Gross a settlement of $81 million, which will go to his charitable foundation, the Bill and Sue Gross Family Foundation.

Pimco has also moved to recognise the contribution of Gross and other founders to its success. The company is dedicating a new 'Founders Room' in their honor at its Newport Beach headquarters. Additionally the Pimco Foundation, which oversees charitable donations and projects, named Gross a director emeritus and is establishing an annual Bill Gross Award.

Gross said: ‘Pimco has always been family to me, and, like any family, sometimes there are disagreements. I’m glad that we have had the opportunity to work through those, and see the Pimco founders receiving the recognition they deserve. I am honored to be included in their ranks and to know that Pimco is in capable hands.’

His successor as CIO of the firm, Dan Ivascyn, said: ‘Bill Gross has always been larger-than-life. He has a well-deserved stellar reputation as an investor and a philanthropist. Bill has had an enormous influence on Pimco and the careers of many who have passed through its halls. He built this business from the ground up and we have great respect and admiration for his talents.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Daniel Ivascyn
Daniel Ivascyn
2/19 in Bonds - Absolute Return USD (Performance over 3 years) Average Total Return: 12.85%
William H Gross
William H Gross
Citywire TV
Play Citywire 20: Investec's du Toit on managing the 'jerk factor'

Citywire 20: Investec's du Toit on managing the 'jerk factor'

Investec boss Hendrik du Toit believes he has become far more decisive over the last 20 years, especially when it comes to managing 'jerk' factor.

Play Citywire 20: Hugh Young's bleak lesson

Citywire 20: Hugh Young's bleak lesson

In the latest video to mark Citywire's 20th birthday, Aberdeen Standard Investments Asia head reminisces about one of the toughest periods in his career.

Play IWD 2019 video: fund and wealth figures define diversity

IWD 2019 video: fund and wealth figures define diversity

To mark International Women's Day, we have spoken to a variety of top fund houses and wealth managers about their definition of diversity, and how they hope to achieve a more inclusive workplace.

Read More
Wealth Manager on Twitter