DE Shaw Mandates Loyalty


The investment firm DE Shaw went through some controversy last May. The company’s managing director was accused of having sexually inappropriate behavior toward multiple female colleagues. DE Shaw has since fired this managing director and has implemented new policies to protect its female employees and prevent this type of behavior from ever happening again. Some people think that these changes that DE Shaw is implementing are not genuine because they are making their employees sign a new non-compete term agreement. DE Shaw has only given their employees two options they can either sign the agreement or they can be terminated. The ex-managing director of DE Shaw was an excellent and very experienced investor. So outside sources think that they have set the date for the agreements to be signed so the company can stop its currently employees from becoming direct competitors.

DE Shaw has come to the defense of themselves and stating that the September 16 deadline that they gave to their employees to sign the non-compete agreement is just coincidental that it coincides with the date the suspension is being lifted from the company’s ex managing director. The critics however still remain skeptical because the ex-managing director can know begin poaching again as of September 16. Critics also think that the company could possibly be putting the pressure on his employees to sign is non-compete agreement because no one is going to walk away from their high paying job for a medium-sized settlement check. So, the smart choice would be to sign the non-compete agreement.DE Shaw can also be a little bit nervous because the ex-managing director would be able to take some of the talent and form his own firm. Because he does have positive relationships formed with some of the company’s current staff.

Even though it seems that the firm DE Shaw is trying to deter their employees from leaving the company and either becoming competitors or joining forces with the ex-managing director. They have strongly denied these allegations and continue to claim that everything that they are doing is just coincidental. Their denials are being heard but the passive aggressive pressure that they are putting on their current employees to sign this non-compete agreement seems to tell another story.