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O.C. BUSINESS PLUS | HEARD ON THE BEAT / FINANCIAL
SERVICES

Bond Guru Offered a $200-Million Package

March 02, 2000|EDMUND SANDERS | Edmund Sanders covers financial institutions and fraud for The Times. He can be reached at (714) 966-5811 and at edmund.sanders@latimes.com

For those who think the five-year, $200-million compensation package being offered to Pimco bond guru William Gross is a little extreme, consider the Newport Beach-based company's recent disclosure.

Last month, Gross, who oversees Pimco's top-performing Total Return Fund, accurately predicted one of the biggest Treasury bond rallies in years and executed some well-timed trades to take advantage of the market shift.

The result? Pimco pocketed about $200 million in profits, according to the company. Not bad for a month's work.

And it may help explain why German insurance giant Allianz A.G., which is buying a majority stake in Pimco Advisors Holdings, has offered to pay Gross about $200 million in cash and stock over the next five years, to entice the bond manager to remain at the company. The package makes Gross one of the world's highest-paid fund managers.

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