Hedge fund manager Bill Ackman took Pershing Square Inc (NYSE:PS) public earlier this year. In doing so, he made all 48 employee at the company millionaires or multi-millionaires.
Ackman on People
In a recent interview with Fortune, Ackman discusses everything from investments to Donald Trump to how he built Pershing Square.
In the interview, Ackman says that Pershing Square has a small staff that can accomplish what other companies can’t.
"It starts with people you recruit," Ackman said on Fortune’s "Titans and Disruptors" podcast.
Ackman said he looks for people with high character and people you want to hang out with, since you may spend more time with other employees than with your own kids during the school months.
"You want to choose who those people are."
The Pershing Square CEO said that finding a super-talented person with great human qualities is a "great base" for a potential hire.
Those who have been hired into Pershing Square have been rewarded, according to Ackman. Compensation is tied to the company’s overall performance rather than individual P&L (profit and loss) statements.
Ackman is a big in-person office believer, with employees required to work in the office five days a week for 10 months. For the other two months, many workers go to a facility out east, while others work from home or in the office.
When Pershing Square went public, Ackman said every person in the company ended up with millions of dollars, from the janitors and cleaners to the receptionists and everyone else.
"We believe in taking care of our people."
The comments on making janitors and cleaners millionaires came after the recent SpaceX (NASDAQ:SPCX) IPO saw engineers, janitors, and cafeteria workers at the space company become millionaires. Many employees have received equity in the company over the years in recognition of their work and service.
Ackman said that everyone at Pershing Square is a shareholder in the company and invested in its future success.
"We look after people."
This philosophy and treatment have led to minimal turnover at Pershing Square, according to Ackman, who couldn’t think of any recent undesired departures.
"People don’t think about going anywhere else."
Every Person Matters
Ackman told Fortune that most firms with $38 billion in assets have more than 48 people working for them.
"We’re able to operate much more efficiently," Ackman said.
The hedge fund manager said Pershing Square is only as successful as every piece of the company, whether it’s the cleanliness of the office, a good greeting to visitors by the receptionist, all the way on to accounting, finance, technology, and legal.
"It’s a watch. Very carefully wound watch. Any part breaks, the watch breaks."
Pershing Square | Photo courtesy: T. Schneider / Shutterstock.com
Login to comment