Key Takeaways
- • Adam Benjamin, former manager of the $48 billion Fidelity Select Semiconductors Portfolio, has sued FMR, Fidelity's parent company, in the Suffolk Division of the Massachusetts Superior Court over a withheld "multimillion-dollar" compensation package.
- • Benjamin alleges Fidelity terminated him on July 10 after failing to retain him, then imposed a non-compete clause that caused him to forfeit the package.
- • Benjamin began working at DFO Management, the family office of Dell Technologies founder Michael Dell, on October 1, according to the lawsuit.
- • The fund he managed was up 58% year to date versus 13.3% for the S&P 500, with a 37.4% average annual return over five years, and holds Morningstar's five-star and gold rating.
- • Fidelity declined to comment, and neither Benjamin nor his lawyers could be reached.
Summary
Adam Benjamin, a former semiconductor fund manager at Fidelity Investment Management, has sued its parent company FMR, alleging that Fidelity refused to pay a "multimillion-dollar" compensation package after he joined DFO Management, the family office of billionaire Michael Dell, according to the complaint reported by Insurance Journal and Reuters. The suit was filed on a Friday in the Suffolk Division of the Superior Court of Massachusetts.
The lawsuit alleges that after Fidelity executives failed to persuade Benjamin to stay, the firm "turned on a dime" and terminated him on July 10 of this year. Fidelity then enforced a non-compete clause, causing him to forfeit compensation totaling millions of dollars. The complaint argues that the provisions are "being broadly misused by Fidelity as a retention tool or improper barrier/deterrent" rather than protecting legitimate business interests. Benjamin alleges that Fidelity's withholding of compensation rests on the false claim that he was joining a competitor, and he said he has never worked for Fidelity's own family office business. Benjamin began working at DFO on October 1, the lawsuit said.
Benjamin managed the $48 billion Fidelity Select Semiconductors Portfolio, which is up 58% so far this year, compared with 13.3% for the S&P 500 index. The fund's average annual return of 37.4% over the last five years places it in the top percentile of comparable funds rated by Morningstar, which awarded it five stars and its gold medalist rating, the highest score.
Non-compete agreements are common in the asset management industry. Fidelity declined to comment on the lawsuit, and neither Benjamin nor his lawyers could be reached for comment.
The lawsuit alleges that after Fidelity executives failed to persuade Benjamin to stay, the firm "turned on a dime" and terminated him on July 10 of this year. Fidelity then enforced a non-compete clause, causing him to forfeit compensation totaling millions of dollars. The complaint argues that the provisions are "being broadly misused by Fidelity as a retention tool or improper barrier/deterrent" rather than protecting legitimate business interests. Benjamin alleges that Fidelity's withholding of compensation rests on the false claim that he was joining a competitor, and he said he has never worked for Fidelity's own family office business. Benjamin began working at DFO on October 1, the lawsuit said.
Benjamin managed the $48 billion Fidelity Select Semiconductors Portfolio, which is up 58% so far this year, compared with 13.3% for the S&P 500 index. The fund's average annual return of 37.4% over the last five years places it in the top percentile of comparable funds rated by Morningstar, which awarded it five stars and its gold medalist rating, the highest score.
Non-compete agreements are common in the asset management industry. Fidelity declined to comment on the lawsuit, and neither Benjamin nor his lawyers could be reached for comment.
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