Janus Capital Group Inc. Executive Compensation Under Investor Investigation

If you are a current long term investor in Janus Capital Group Inc. (NYSE: JNS) stock and/or if you have any information relating the investigation including whistleblowers and former employees, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Janus Capital Group
Affected Securities: 
NYSE: JNS

An investigation on behalf of current long term investors in shares of Janus Capital Group Inc. (NYSE:JNS) concerning possible breaches of fiduciary duties related to potential excessive compensation that was awarded to certain senior officers and executives at Janus Capital Group Inc was announced.

The investigation by a law firm focuses on whether the directors and officers of Janus Capital Group Inc. harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in Janus Capital Group (NYSE:JNS) focuses on possible shareholder claims that certain of Janus Capital Group’s senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.

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.”

However, 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.

The investigation concerns possible claims that the prior compensation awarded at Janus Capital Group is improper based upon its current operating condition.

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.

On April 27, 2011, Janus Capital Group Inc. announced its financial results for the first quarter 2011 and announced that Gregory A. Frost, the Company’s Executive Vice President, Principal Financial Officer and Treasurer, will resign all of his positions at the Company, and will be departing from the Company on or about August 1st.

The investigation seeks also to determine whether certain senior officers and executives at Janus Capital Group Inc. were awarded salaries, bonuses, stock options and other forms of long-term, ‘incentive’ or retirement compensation that were excessive or unwarranted based on the Janus Capital’s performance as compared to what senior officers and executives at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.

Finally the investigation focuses also on possible shareholder claims that would allow NYSE:JNS stockholders to more efficiently influence or control future compensation decisions at Janus Capital Group Inc.