Edward Keely, a former Janus portfolio manager, will receive $4.8 million from Janus Management Holdings after a Colorado District Court jury found that Janus had breached its contract with him, according to court documents.
Mr. Keely filed the lawsuit in October 2006 after Janus Capital Group CEO Gary Black had implemented pay cuts for all Janus portfolio managers, reducing the percentage of cash incentive payments for portfolio managers to 67% from 75%.
Mr. Keely claimed in his lawsuit that Janus had retained well over 50% of his wages and compensation in violation of his contract.
"We are disappointed with the outcome of the trial," said a Janus company statement. "However, we stand by our decision to put investors and stockholders first. We've worked hard to align incentives for portfolio managers to deliver strong, long-term results while also delivering on our commitment to our public company stockholders. Janus has an incredibly strong and committed investment team and our sole focus is on continuing to deliver for our clients and shareholders."
Eric R. Olson and Glen E. Summers, Mr. Keely’s attorneys, were unavailable for comment.
