Pacific Investment Management Co. paid former Chief Investment Officer William H. Gross a bonus of about $290 million in 2013, a year in which his Total Return Fund trailed a majority of its peers, showed documents provided to Bloomberg by someone with knowledge of PIMCO's bonus policies.
Mohamed El-Erian, the former CEO who previously shared the title of CIO with Mr. Gross, received a 2013 bonus of about $230 million, the data showed.
By comparison, Laurence D. Fink, CEO of BlackRock, the world's biggest money manager, received $22.9 million in 2013 compensation, and Michael Diekmann, CEO of PIMCO's parent, Allianz SE, was paid €7.2 million ($8.99 million), regulatory filings show.
“While PIMCO does not comment on compensation, the figures provided to Bloomberg are not correct,” said Dan Tarman, a spokesman for PIMCO, declining to specify the firm's objections. “For more than three decades, PIMCO's managing directors have maintained a substantial interest in the firm, currently 30% of profits, and this provides an important means to attract and retain the best investment talent to serve our clients.”
Compensation for money managers is typically tied to the amounts they oversee and the returns they produce. Messrs. Gross and El-Erian together were responsible for the firm's almost $2 trillion in assets as co-CIOs in 2013. Mr. Gross' main fund, the Total Return Fund, trailed 65% of its peers in 2013, after beating 90% of its peers in 2012, according to data compiled by Bloomberg.
Mr. Gross, who now works for Janus Capital Group, and Mr. El-Erian didn't respond to phone calls seeking comment.
