Publications
Publications
- June 2006 (Revised January 2012)
- HBS Case Collection
Teena Lerner: Dividing the Pie at Rx Capital (A)
By: Boris Groysberg, Victoria Winston and Robin Abrahams
Abstract
Teena Lerner started her own hedge fund firm in 2001 after nearly 20 years as a star biotechnology analyst and hedge fund manager. After the start-up phase, her firm became highly profitable. In 2004, however, one of her four analysts lost a lot of money for the firm. If Lerner followed the existing compensation system, she would wind up significantly underpaying her other analysts, all of whom had performed well. Should she follow the compensation system or not? And what should be done about the underperforming analyst?
Keywords
Managerial Roles; Investment Funds; Performance; Business Startups; Compensation and Benefits; Corporate Finance; Financial Services Industry
Citation
Groysberg, Boris, Victoria Winston, and Robin Abrahams. "Teena Lerner: Dividing the Pie at Rx Capital (A)." Harvard Business School Case 406-088, June 2006. (Revised January 2012.)