17 November 2014

Gross's 2013 Pimco bonus $290m; Allianz's Diekmann paid $9m

Pimco, the Allianz-owned fund management company, paid a 2013 bonus of about $290m to Bill Gross, its chief investment officer at the time, according to Bloomberg citing someone with knowledge of Pimco's bonus policies.

This compared with the €7.2m ($8.99m) paid to Michael Diekmann, CEO of Pimco's parent, Allianz SE, in 2013.

Mohamed El-Erian, the former Pimco CEO, who previously shared the title of CIO with Gross, received a 2013 bonus of about $230m, according to the same Bloomberg report.

El-Erian left Pimco in January and Gross in September.

Gross and El-Erian were responsible for the firm's almost $2trn in assets as co-CIOs in 2013. Gross's main fund, Pimco total return, lagged behind 65% of its peers in 2013, after beating 90% of them in 2012, according Bloomberg data.

A Pimco spokesman, however, said the compensation numbers provided to Bloomberg were not correct, adding that Pimco's managing directors have for over 30 years maintained a substantial interest in the firm, at present 30% of profits, as a means of attracting and retaining the best talent.

Bloomberg quoted an Allianz spokeswoman as saying the element of partnership had been a basis for success at Pimco. "It was an integral part of the acquisition of Pimco by Allianz in 2000 and resulted in a reduction of the purchase price paid."