Janus Capital Group Inc. Investor Files Lawsuit Against Directors Over Executive Compensation

September 28, 2012 (Update) -- A Colorado federal judge dismissed a derivative action against Janus Capital Group Inc. ruling that the plaintiffs failed to show the board had explicitly ignored the best interests of the investors.

San Diego, Aug 15, 2011 (Shareholders Foundation) -- An investor in Janus Capital Group Inc. (NYSE:JNS) filed a lawsuit against members of the board of directors of Janus Capital Group and certain of its current and former executive officers in connection with Janus Capital Group's 2010 compensation for its CEO and other executives.

According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed to investors in NYSE:JNS stocks in connection with the award of excessive and unwarranted 2010 executive compensation.

Janus Capital Group’s 12months Total Revenue over the past four years declined from $1.117billion in 2007 to $848.70million in 2009, respectively $1.015billion in 2010. Its Net Income fell to a Net Loss of $757.10million in 2009.

Shares of Janus Capital Group Inc. dropped from as high as $35 in 07 and $30 in 08 to as low as $4.34 in March 09.

In 2011 NYSE JNS stock reached in the first months as high as $14.54 per share in February but fell to $9.28 on June 7.

Nevertheless, Janus Capital Group’s CEO, who joined the company on Feb. 1, 2010, earned a total compensation of $20.33million in 2010. The compensation included $10 million in restricted stock as well as a $306,287 relocation package, which included an $114,670 tax "gross-up.”

Janus Capital Group’s shareholders recently expressed their disdain for executive pay packages by voting “no” on Janus Capital Group's say on pay provision. Janus Capital Group Inc. (NYSE:JNS) received only 40.1% support for its pay practices at its April 28 annual meeting, according to a company filing.