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

US investment group Pimco and Bill Gross have settled their long-running legal battle with former star manager receiving £64 million.

 
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.’

1 comment so far. Why not have your say?

Ladysaver

Mar 28, 2017 at 21:21

Well, it sounds to me that Bill Gross just wanted fair recognition for his remarkable PIMCO career, and a role in things he cares about, like its charitable foundation. If he's giving this huge sum of money that he gets from PIMCO to his own charitable foundation, the squabble was surely not just about money.

I think it's cool that he has got PIMCO to recognise his contribution and that of his co-founders, and that PIMCO has now installed him on the board of its charitable foundation.

Gross is legendary, and it sounds like PIMCO got things badly wrong at his point of leaving.

You need to treat elders with respect... Interesting that Gross said "PIMCO has always been like family to me". We should treat our grandparents nicely, especially if all they've done has been good for the family.

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