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Fund giant agrees $30m settlement with top manager

Fund giant agrees $30m settlement with top manager

Guggenheim Partners has agreed to pay its top female fund manager $30 million (£25.6 million) in compensation. 

According to the Financial Times, the fund giant made the settlement with its fixed income chief investment officer Anne Walsh (pictured) and global CIO Scott Minerd last year.

The payment was made following an internal dispute with Guggenheim's chief executive Mark Walter, who was accused of favouritism for rewarding those most loyal to him at the expense of others. 

According to the FT, which claimed to have spoken to current and former employees at Guggenheim, the firm agreed last summer to pay Walsh and her attorneys a total of $30 million. This included an $11.25 million payment for alleged physical injury/sickness and/or exacerbation thereof'. Her salary was also raised from $300,000 to $5.5 million. 

It is said Walsh, who joined the business in 2007, can also cancel the agreement with Guggenheim if Minerd resigns over 'the conduct of its management', or if she became unhappy with the firm's 'culture' after two years. 

Guggenheim is reported not to have admitted to an misconduct in the agreement, which protected the firm from further claims by Walsh. 

Clients had expressed concern over the tension at Guggenheim. According to Reuters, at the end of last year a number of institutional clients had put the firm on 'watch' lists following the bad publicity. 

 

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