Bill Gross’ $200m pay ‘not appropriate’, says PIMCO trustee; William Popejoy blasts boss of world’s largest bond fund, saying Bill Gross’ salary could pay for 2,000 teachers

Bill Gross’ $200m pay ‘not appropriate’, says PIMCO trustee

William Popejoy blasts boss of world’s largest bond fund, saying Bill Gross’ salary could pay for 2,000 teachers

By Katherine Rushton

4:50PM GMT 11 Mar 2014

Bill Gross is under pressure on a new front, after one of the trustees of his Pacific Investment Management Company said he is overpaid.

William Popejoy, a former financial executive who has been a trustee at the world’s largest bond firm for 23 years, said Mr Gross’ pay package, reported to be worth $200m a year, needs to be revised.

“You could hire 2,000 schoolteachers for that money. I don’t know what Bill should be paid, but $200m is not appropriate,” he told the LA Times.

The comments come at a difficult time for Mr Gross, who is already battling to shore up investor confidence, after he had a falling out with his longstanding business partner Mohammed El-Erian.

Mr El-Erian resigned from PIMCO in January, without giving a reason.

It was later reported that tensions between the two men had erupted into a major row, in which Mr Gross told Mr El-Erian: “I have a 41-year track record of investing excellence…What do you have?”

According to the report in the Wall Street Journal, Mr El-Erian responded, “I’m tired of cleaning up your s***.”

The public falling out has dominated the headlines and been the focus of gossip on Wall Street ever since.

Last week, Reuters claimed that Mr Gross accused Mr El-Erian of trying to “undermine” him by “writing” the Wall Street Journal report. PIMCO’s spokesman denied that Mr Gross had ever made the remarks Reuters attributed to him.

Whether he did or not, the public row has alarmed some investors in the $1.9 trillion Pimco fund.

Several US investment firms, including pension funds, have formally put Pimco on their “watch lists” in light of the apparent acrimony.

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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