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Another Hedge Fund Legend Calls It Quits: Phil Falcone Leaves Harbinger Group, Gets $20.5 Million Severance

Tyler Durden's picture




 

Another day, another (former) hedge fund legend calls it quits, this time embattled one-time hedge fund legend (until that whole Securities Fraud charge appeared) Phil Falcone, whose Harbinger hedge fund was a decade ago the dream venue for most hedge fund traders and analysts, and who as of December 1, will no longer be CEO and Chairman of the Harbinger Group. But don't cry for Falcone: he will depart with a $20.5 Million lump sum payment. His replacement: the man who has already been intimately involved with Harbinger - Leucadia's Joe Steinberg, who on numerous previous occasions has provided critical funding to the embattled conglomerate.

From the release:

Harbinger Group Inc. today announced that Philip Falcone, HGI's Chief Executive Officer and Chairman of the board of directors (the "Board") will, effective December 1, 2014, resign from his positions with the Company. Joseph S. Steinberg, an independent member of the Board, will become Chairman of the BoardHGI will name a Chief Executive Officer upon the completion of a search process.

 

Mr. Steinberg, the incoming Board Chairman, commented that, "During Mr. Falcone's tenure as Chairman and Chief Executive Officer, the Company experienced significant growth and success, beginning as a company with approximately $140 million market capitalization in 2009 rising to today's market capitalization of approximately $2.6 billion. We thank Phil for his many years of hard work and leading HGI." 

 

Simultaneously with Mr. Falcone's resignation, Mr. Keith Hladek, an HGI director, will also resign from the Board.  Mr. Falcone and Mr. Hladek are expected to dedicate their efforts to HC2 Holdings, Inc. and Harbinger Capital Partners, LLC. In connection with his resignation, the Company will pay Mr. Falcone a lump sum payment consisting of $20,500,000 one-time payment, $16,500,000 in respect of Mr. Falcone's previously earned and awarded annual bonus for fiscal year 2014 and $3,300,000 as a pro-rata bonus for fiscal year 2015.  In addition, the warrants to acquire common stock of HGI that were previously awarded to Mr. Falcone will continue to vest in accordance with their existing vesting schedule.

Congratulations to Joe Steinberg, who with the recent addition of Jefferies, is building a financial conglomerate empire which according to some is starting to become a Berkshire Hathaway lite.

 

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Tue, 11/25/2014 - 10:48 | 5485815 Theta_Burn
Theta_Burn's picture

A Harbinger of things to come?

Tue, 11/25/2014 - 10:52 | 5485825 TheAnalOG
TheAnalOG's picture

How a hedge hog supposed to get by in negative interest rates and collapsing economies?

Tue, 11/25/2014 - 11:17 | 5485898 Consuelo
Consuelo's picture

Let's ask Ron Jeremy...!!!

 

 

 

Tue, 11/25/2014 - 11:32 | 5485955 Save_America1st
Save_America1st's picture

he quit before they could nail his head a few times and throw him off the top of a building with his throat slashed.

Tue, 11/25/2014 - 11:41 | 5485979 kliguy38
kliguy38's picture

Yup the smart ones are getting out before the door is "shut"

Tue, 11/25/2014 - 11:50 | 5486031 SoilMyselfRotten
SoilMyselfRotten's picture

Moral of the story: If you aren't being offered  a big severance package, you better not shop at Home Depot

Tue, 11/25/2014 - 14:02 | 5486841 KnuckleDragger-X
KnuckleDragger-X's picture

Yep, he beat the nailgun and if he's smart he'll pick a tropical island far from civilization to move to.

Tue, 11/25/2014 - 10:59 | 5485847 junction
junction's picture

In days long gone, Falcone's photo would have a number plate under it, a picture taken by a jail photographer after Falcone's perp walk.  The good old days, before Wall Street attorneys owned the Justice Department lock, stock and barrel.

Tue, 11/25/2014 - 11:09 | 5485882 trulz4lulz
trulz4lulz's picture

$20 Mil. does seem better than a slit throat or an "accident" these days.

Tue, 11/25/2014 - 11:14 | 5485893 Arius
Arius's picture

smart guy ... just gave it away ...

Tue, 11/25/2014 - 11:00 | 5485818 hedgeless_horseman
hedgeless_horseman's picture

 

 

But don't cry for Falcone: he will depart with a $20.5 Million lump sum payment.

Pffftttt...isn't that only like a few dresses and one or two parties for Lisa?

Tue, 11/25/2014 - 14:04 | 5486850 KnuckleDragger-X
KnuckleDragger-X's picture

The Wall St. version of a cheap gold watch.....

Tue, 11/25/2014 - 18:53 | 5488440 prymythirdeye
prymythirdeye's picture

Or the cost to back a movie from her production company

Tue, 11/25/2014 - 10:50 | 5485819 Grinder74
Grinder74's picture

Fuck the SEC.

Tue, 11/25/2014 - 10:54 | 5485828 Spitzer
Spitzer's picture

wasn't this clown on the ropes a few years ago ?

 

I thought he want bankrupt on some whacky telecommunications bet ??

 

and his ladyboy wife was taking him to the cleaners

Tue, 11/25/2014 - 10:56 | 5485838 Seasmoke
Seasmoke's picture

No recent pictures of Lisa Falcone ? This what I come to ZH for !!

Tue, 11/25/2014 - 11:08 | 5485862 hedgeless_horseman
hedgeless_horseman's picture

 

 

Caption contest?

What is the over/under on total plastic surgery dollars in this shot?

What look is their hairdresser trying to achieve?

What combination of medications should I consume if I want to achieve Lisa's eyes?

Tue, 11/25/2014 - 11:06 | 5485867 SickDollar
SickDollar's picture

WTF, you quit  you job and you still  get millions. I am tired of my slave job,I need an elite job lol

 

 

Tue, 11/25/2014 - 11:07 | 5485876 paint it red ca...
paint it red call it hell's picture

No tears for falcone, or any of his ilk.

Tue, 11/25/2014 - 11:20 | 5485908 Consuelo
Consuelo's picture

Goy out, Schmendrick in.

Tue, 11/25/2014 - 11:56 | 5486082 darteaus
darteaus's picture

Chump change.
The NFL Commish gets $40M/ye.

Tue, 11/25/2014 - 11:56 | 5486084 allgoodmen
allgoodmen's picture

He must have really pissed someone off to only get 2 weeks severance.

Tue, 11/25/2014 - 12:09 | 5486146 Clowns on Acid
Clowns on Acid's picture

$20MM / year for staying long while the Fed's printed money jacked the Equity markets straight up. Sure I can see the value to society and the economy doing that job....sure.  

Tue, 11/25/2014 - 14:22 | 5486965 Seize Mars
Seize Mars's picture

Ok, I think Lisa is fuckin hot. I'll bet she is a tiger in bed. Furthermore, if you read about Falcone's trading versus GS you must agree he us a very astute bond trader. Anyways that's my 2 bps.

Tue, 11/25/2014 - 18:49 | 5488410 prymythirdeye
prymythirdeye's picture

She's got the biggest fucking duck lips and looks totally plastic.  Who gives a shit if she is a tiger in bed?  Do you have that big of a problem getting women?

Wed, 11/26/2014 - 21:23 | 5492824 Seize Mars
Seize Mars's picture

Well, no. I don't think so anyways. I just thought she was hot.

Tue, 11/25/2014 - 16:46 | 5487747 fibonacci's claus
fibonacci's claus's picture

which one is lisa???  looks like phil spent more on surgery and lisa has a bigger cock.

yuck!

metrosexual looking luciferians

Tue, 11/25/2014 - 18:00 | 5488160 Gusher
Gusher's picture

Phil Falcone came from a nothing small town on Minnesota's far north Iron Range.  His family was as ordinary as any other middle class American family.  That he came from nothing to become a billionaire is something that was quite unexpected.  If he bent some rules on the way up, well who doesn't?  Considering where the stock market is I think it is fair to suggest that those that invested with him, did well over the long run.

Tue, 11/25/2014 - 18:47 | 5488392 prymythirdeye
prymythirdeye's picture

...."well who doesn't?"  Me bitch.  Fuck you.

Tue, 11/25/2014 - 21:00 | 5489039 Gusher
Gusher's picture

Ya right. The way you put it tells me different.  Is Falcone in jail?  No.

Tue, 11/25/2014 - 21:35 | 5489222 prymythirdeye
prymythirdeye's picture

Fuck does Falcone not being in jail have to do with ANYTHING????? Are you even a real person?

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