Ray Dalio, founder of the world’s largest hedge fund, is to be paid billions in a retirement deal.
- Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, is set to be paid billions in a retirement deal.
- Dalio gave up control of the company in October, but remained as an executive of the board until fully deciding to step down on the condition that he were to receive regular compensation through stocks worth billions of dollars.
- Dalio is already worth around $19 billion, and the payout from the stocks informally titled “Ray’s Shares” will add billions more to his fortune.
Why it’s news
Ray Dalio is greatly admired for his leadership principles, his insights about the macro-economy, and his stock-market wisdom. When he stepped down from his role at Bridgewater, the impression left was that he was turning the company over to current managers and Dalio would focus on this writing, talks, and sharing of his wisdom.
No it is learned that he is receiving billions in retirement payout after officially handing over his company Bridgewater Associates.
There is nothing wrong with the payout. After all, Dalio founded the company from his apartment in 1975—the company is the largest hedge fund in the world, managing more than $150 billion in assets. It’s news because it is a revelation that only surfaces now, months after the agreement took place.
At the end of September, Dalio transferred all of his voting rights to the board of directors at Bridgewater Associates and stepped down as co-chief investment officer in October. He stated that the company would be controlled by co-CIOs Bob Prince and Greg Jensen and co-CEOs Nir Bar Dea and Mark Bertonlini, but he would remain on the board with the title of founder and CIO mentor.
The company just announced that it hired a third co-CIO Karen Karniol-Tambour.
He agreed to fully step down if he received regular payouts through stocks worth billions of dollars which was agreed upon, leaving him with billions in retirement money.
The agreement did not come easily as many executives disagreed, but Dalio says the hedge fund was his “property rights”—considering he created the company and he wanted to receive compensation for it, current and former employees told MarketWatch.
Dalio already has a net worth of around $19 billion, and the payout from the stocks informally titled “Ray’s Shares” will add billions more to his fortune.