D.E. Shaw and Daniel Michalow

D.E. Shaw is a company that sells hedge-funds. They have/had a managing director named Daniel Michalow, who was accused of being sexually inappropriate with female coworkers. Michalow was fired because of allegations of inappropriate touching of female colleagues. Michalow, responding to these allegations, claimed he “was a dick”, “not a perv”.

D.E. Shaw has a culture of not talking to outsiders because they handle sensitive information. This has led to the company not talking to anyone to cover up hedge-fund misbehavior. D.E. Shaw’s current employees had until the middle of this month to agree to a new non-compete agreement. They apparently have little choice, because not signing the agreements will lead to the loss of their job. They would get to keep their deferred compensation. The leadership at D.E. Shaw claims that the agreement is necessary to keep the company in line with common practice.

D.E. Shaw believes that few employees will accept a lesser check and quit. The company believes that most employees will just wait around to see what happens because D.E. Shaw has a history of paying out big time. But, because D.E. Shaw asked its employees to sign the noncompeting agreement, some wonder what made such a policy necessary. If more than a few employees will not sign the non-compete agreement and side with Michalow, what damage will be done? What if the people who agree with Michalow are women? In this scenario, the non-compete agreement might be the least of their worries.

Find out more about DE Shaw: https://dealbreaker.com/2019/03/anne-dinning-back-part-time-to-run-de-shaw