Citadel tightens staff restrictions with non-competes of up to two years
Ken Griffin’s Citadel is imposing non-compete periods of up to two years on some investment professionals, including analysts, as the multi-strategy hedge fund takes an increasingly aggressive approach to retaining talent and protecting its investment strategies, according to a report by Bloomberg.
Citadel, the multi-strategy hedge fund managed by Ken Griffin, is tightening restrictions on staff by imposing non-compete periods of up to two years for certain investment professionals. According to Bloomberg, the Miami-based firm is linking the length of garden leave to an employee’s total compensation. Analysts are particularly affected, facing a minimum of 12 months away from the industry and potentially up to two years if they are higher-paid portfolio managers or analysts.
This is significantly more restrictive than the nine to 12 months typically seen at other major multi-strategy hedge funds. Critics argue that these lengthy restrictions give Citadel disproportionate leverage over younger investment professionals. Citadel, which manages approximately $71 billion, has a history of stringent employment agreements.
In 2020, portfolio managers faced non-compete clauses averaging around a year, with some employees required to remain on garden leave for up to 21 months. Griffin has been a strong advocate for tougher non-compete rules, even supporting Florida legislation allowing garden-leave provisions of up to four years, which will take effect in July 2025.
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