Deal breaker article starts off by stating back in last May DE Shaw had to fire a managing director by the name of Daniel Michalow due to allegations of him being sexually inappropriate with his female coworkers. Michalow sarcastically responded back to the accusations by stating that he might be a dick but not a perv. This situation leads into another shocking revelation of covering up hedge fund misbehavior. This leads to DESCO a year later asking DE Shaw to sign a non-compete agreement or risk being terminated. Thought the deadline that DESCO gives DE Shaw sparks even more controversy. Ironically the deadline is on the same day his current non-compete clause expires.
DeShaw is now being more persistent with getting people to sign non-compete agreements. This leaves to some pondering whether it is possible a ton of people going to take a relatively medium-sized check and severe ties with the company when they can just stay in just a little bit longer and see what happens at a hedge fund that still compensates very well. DeShaw is trying his best to remove any doubt that things are getting late stage Kremlin at DESCO HQ. In addition, that total compensation will ultimately suffer for people who are leaving or staying. This adds to the worried if some PMs will fear a paranoid future thus causing them to just take the money and severe ties with the company. Sources then aroused implying a meeting happen late last year with MDs involving pledge of a loyalty. The MD’s alleged responses were of confusion, wondering what could be happening with the company that will warrant such a request.
If there weren’t already enough scenarios of how this could turn out bad for DeShaw, then came the thought of many people refusing to sign the non-compete agreement and possibly joining up with Michalow. Only time will tell come September.