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Citadel sets longer non-compete garden leave for some analysts

Analysts could face at least 12 months away from the industry, and Citadel links garden-leave length to an employee’s total compensation.

Reported · Written up by our desk · Fund Industry

Ken Griffin’s Citadel is imposing longer non-compete periods, including for analysts, as it adopts a more aggressive approach to retaining talent and protecting its investment strategies, according to reporting by Hedgeweek that cites Bloomberg. The firm is tying the length of garden leave to an employee’s total compensation. Analysts face a minimum of 12 months away from the industry, while higher-paid portfolio managers and analysts can be subject to restrictions of up to two years, which the report says is more restrictive than the nine to 12 month range typically seen at other major multi-strategy hedge funds.

The longer terms are already drawing criticism from competitors. One hedge fund founder said the restrictions on analysts are excessive and could give Citadel disproportionate leverage over younger investment professionals.

Citadel, which manages about $71bn, has long used stringent employment agreements. In 2020, its portfolio managers faced non-competes averaging around a year, with some employees placed on garden leave for 18 months to secure deferred compensation, and some of those arrangements later extended to 21 months. Griffin has also backed Florida legislation allowing garden-leave provisions of up to four years, which is set to take effect in July 2025.

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