US – Janus Capital, mired in the US improper-trading scandal, has named former Charles Schwab Corp. vice chairman Steve Scheid as non-executive chairman.
The appointment, effective January 1, will see Scheid take over from Landon Rowland. Rowland had been due to step down on that date and be replaced by current chief executive Mark Whiston.
“I look forward to working closely with Mark, Janus’ board and the funds’ trustees to resolve the issues that we face and restore confidence among all our constituents,” Scheid said.
Denver-based Janus also said it has agreed to pay 31.5 million dollars to reimburse fund investors.
Last month Richard Garland quit as chief executive of Janus International following an internal review of the Denver-based firm’s trading activities. Garland had been implicated in a probe into Janus’ market timing activities by the New York Attorney General’s office.
Whiston’s contract, which had stated that he would become chairman, has now been revised. Under its new terms, Whiston has forfeited a cash severance payment of 20-23 million dollars.
Other changes to the contract include: a change to his bonus, an extended contract through to 2006 and a cut to severance benefits and the granting of 236,000 shares.
Last week Janus subsidiary INTECH won a 250 million-dollar US large-cap mandate from Blue Sky Group, which manages pension assets for KLM Royal Dutch Airlines.