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Stay or Go: Options Are Limited When Your Firm Has Been Indicted

As today’s Wall Street Journal article, “Fund’s Employees Face Uncertainty” indicates: “No major financial firm has survived a criminal indictment.”  With the criminal indictment of  SAC Capital Advisors, many of its current employees are confronted with a difficult decision.  The choices are limited – stay or go.

“Staying” means waiting to see if they will lose their job, but also the risk of being considered “damaged goods,” hurting their future job prospects.

“Going” also has its drawbacks.  Ongoing legal proceedings could interfere with the employees’ attention to their new positions. And, to make the terrain even more difficult, these employees could forfeit significant deferred compensation if they leave on their own volition, plus loss of year end bonuses.

Only way to evaluate is to assess marketability.  Firms always need good talent. And many in the industry have survived the taint of their former employers’ failures — there are too many to name.