One Year Later: Michaelow Still A Thorn In The Side Of DE Shaw
Despite the notorious culture of secrecy at DE Shaw, the quant-driven hedge funds which formerly employed Amazon CEO Jeff Bezos finds itself back in the spotlight these days again. Still dealing with the fallout from having to fire Managing Director Daniel Michalow for alleged sexual misconduct with colleagues, DE Shaw finds it’s employment policies related to the scandal back in the news again.
As readers will previously recall, Michalow’s firing in 2018 brought with it a time-limited non-compete arrangement where Michalow had to wait at least 18 months after his firing before he would be able to hire any of his former DE Shaw colleagues. With September 16, 2019 having come and gone, however, the non-compete agreement that Shaw employees were subject to has been lifted, and appear DESCO HQ is quite concerned.
Reports from the Financial Times have indicated that in the weeks leading up to the arrangement expiring, DE Shaw was taking some pretty drastic steps to encourage its current employees to sign a non-compete agreement and pledge loyalty to the firm. These revelations cast light on the official story of Michalow’s departure, to say the least. In fact, several are questioning why DE Shaw employees would need to be held down by such a non-compete agreement in the first if Michalow were actually as out-of-control as DE Shaw has claimed.
With the deadline on employees to sign the non-compete by September 16 for DE Shaw employees, leadership is clearly in fear, even though that they claim otherwise. Not surprisingly, the higher-ups at DE Shaw have insisted that the dates of Michalow’s 18-month clause expiring during the exact window that employees were given by which to sign their respective non-compete agreements is “just a coincidence”. Anybody who’s paying any attention at all, however, clearly knows otherwise.