While only one manager refused to sign the agreement, he says, Putnam has hired 17 international fund managers alone since April. Still, Mr. Lasser is clearly concerned these days about former managers who raid his firm for employees or clients. Last year, marketing executive Stephen Gibson left Putnam and joined cross-town rival Colonial Group, a unit of Liberty Financial Cos. Mr. Gibson then hired two Putnam sales executives. Putnam filed suit in state court in Boston against all three former employees and Colonial, alleging breach of employment contracts.
Colonial denies wrongdoing, and the case is pending.
The new contract beefed up provisions of a pre-existing contract in several ways. The financial penalties were new. That restriction holds for two years, and it applies whether the departure is voluntary or involuntary. Several former employee say they feared the provision would preclude them from getting a job in their field even if they were fired. Mr. Lasser says the contract has been well-received by the managers, in part because they are the same group that is now eligible to receive nonvoting Putnam stock.