Bonus Watch ’13: Steve Cohen

Bonus Watch ’13: Steve Cohen

The Big Guy probably won’t have to ask his friends to loan him the scratch to pay that fine.

Despite paying the highest penalty in recorded history for insider trading, Steven Cohen’s 2013 earnings will likely exceed the $ 1.8 billion in fines he has paid to settle the charges against SAC Capital, according to people close to Cohen’s hedge fund…In the fanciful world of hedge fund compensation, Cohen will have a very good year. His 21 percent return on the money that’s his will come to about $ 1.6 billion (using $ 8 billion as an estimate) while he also is entitled to $ 750 million from his outside investors (50 percent of the profits off a 25 percent return on $ 6 billion). Since some of that money has already left the firm, the dollar profit for Cohen is less than that, but the point seems easy to prove. Steven Cohen is poised to earn at least $ 2 billion from profits on his own money and that of his departing outside investors, which exceeds the penalty he will be paying the government.

Cohen’s earnings likely to surpass fine: Sources [CNBC]


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