Pimco

Bill Gross Bloomberg

The knocks against the bond king keep coming.

The latest critique against Bill Gross, co-founder of bond behemoth Pacific Investment Management Co. comes from a longtime trustee to the firm, who lashed out at Mr. Grosss reported $200 million annual salary.

In an interview with the Los Angeles Times ,  the trustee, William Popejoy, took issue with the size of the salary, characterized Mr. Grosss recent performance as mediocre and labeled the fund managers style as bullying, if what I read is true. From the LA Times:

You could hire 2,000 schoolteachers for that money, said William J. Popejoy, a former financial executive who has been a Pacific Investment Management Co. trustee for 23 years. I dont know what Bill should be paid, but $200 million is not appropriate.

Mr. Popejoy, 75 years old, is among five independent trustees who oversee 88 Pimco funds on behalf of investors, the LA Times says. Mr. Popejoy, who also heads the boards governance committee, made clear to the publication that he was speaking for himself and not on the behalf of other trustees.

Turmoil has swirled around Pimco over the past year. The bond market has been under pressure, losses have grown and clients have pulled billions of dollars from the firm. Mohamed El-Erian. who was considered Mr. Grosss heir apparent at the head of Pimco, stepped down earlier this year amid clashes between the two men . according to The Wall Street Journal.

After Mr. El-Erians resignation, Pimco announced a revamped structure that included a new CEO and six deputy chief investment officers.

Mr. Gross defended his firms competitive culture in a subsequent interview with the Journal . saying the trading floor cant thrive on sweet talking alone but that the firm is still a family of sorts.

In the LA Times story, the trustee Mr. Popejoy said German insurer Allianz SE, Pimcos parent company, should investigate Mr. Grosss conduct and attempt to rein in his salary and management style. From the LA Times:

He made it clear, though, that he was unhappy with Pimcos handling of the situation. Popejoy said the independent board members learned about the clashes between Gross and El-Erian only by reading about them. They were not informed by the two Pimco executives who also serve on the board, Douglas Hodge and Brent Harris.

Popejoy said he finds it worrisome if Gross indeed treats employees as the article described. You just cant treat people that way and expect things to be OK, he said. You have to treat people with respect.

Pimco wasnt immediately available to comment on Mr. Popejoys remarks. In a statement to the LA Times, Pimco spokesman Daniel I. Tarman said: Pimco greatly respects the candid views of the Funds independent trustees over many years. We remain focused on delivering value to our fund shareholders and building upon our long-term record of success.