Fund firm Janus names new CEO

Janus Capital Group Inc. said on Tuesday that Chief Executive Mark Whiston would step down, ending months of speculation about his tenure at the company while it was under investigation for improper trading.

Steve Scheid, a former executive of The Charles Schwab Corp. who was named chairman of Janus's board in January, will succeed Whiston as CEO, Denver-based Janus said

Under the terms of a consulting and separation agreement, Whiston will receive a cash payment of about $5.8 million, which includes a consulting services fee. In addition, the company will establish a $7.9 million deferred compensation retirement arrangement valued in Janus mutual fund shares.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

Questions have persisted about Whiston, who was supposed to take over the chairman's position on Jan. 1, ever since Janus was named in the first complaint about abusive trade last year.

Speculation heightened in March when Janus said that in November 2002 it took steps to deter market timing, fast in and out trade that has been at the center of a scandal rocking the mutual fund industry.

For Subscribers

FOR SUBSCRIBERSAbdul El-Sayed tries to woo MAHA voters as Democrats seek inroads with RFK’s supporters

FOR SUBSCRIBERSKratom-like substances are popping up in a typically benign supplement

FOR SUBSCRIBERSGOP super PAC increases its spending for Sen. Jon Husted in tough Ohio race

FOR SUBSCRIBERSRecords reveal tumultuous marriage between slain New York Times executive and wife

FOR SUBSCRIBERSFrom clean energy warrior to ‘wall of shame,’ James Talarico reverses on a fossil fuel money pledge

FOR SUBSCRIBERSCongressional staff planned official trip with luxury stops in Italy and France weeks before election

FOR SUBSCRIBERSA harrowing ordeal aboard an Israel-bound plane

FOR SUBSCRIBERSOpenAI CEO Sam Altman to skip congressional hearing on rogue AI agents

FOR SUBSCRIBERSKey DOJ lawyers departed Trump ‘grand conspiracy’ probe amid pressure to produce, source says

FOR SUBSCRIBERSTrump’s new AI chatbot often links to a site launched under Clinton 26 years ago

FOR SUBSCRIBERSAt MAHA summit, industry CEOs the movement once vilified take the stage

FOR SUBSCRIBERSThis Paralympian has two goals: Win medals and give away $500,000 to her teammates

FOR SUBSCRIBERSCornell rape allegation spotlights stringent New York state laws that have long drawn criticism

FOR SUBSCRIBERSThe debate over AI’s future rages on both coasts

FOR SUBSCRIBERSDecades-old march dispute reignites in Northern Ireland, threatening political crisis

Analysts have questioned whether Whiston was aware of market timing at Janus before New York Attorney General Eliot Spitzer launched his probe into improper trade in September.

To ensure a smooth transition and assist with client relations, Whiston will remain with Janus in a consulting capacity until year's end. The management change is effective Tuesday, the company said.

Janus said it anticipates that the payments and benefits to be provided in connection with Whiston's departure will result in a second-quarter charge of approximately $17 million, or 4 cents per diluted share. Of the total charge, $3.4 million represents the accelerated amortization of Whiston's unvested Janus common stock; that stock, which vests today, has a current value of approximately $2.1 million.