At This US Billionaire's Hedge Fund, Even Receptionists And Janitors Own Millions In Stock

Billionaire investor Bill Ackman says one of the biggest reasons employees stay at his hedge fund, Pershing Square, is that they have a meaningful stake in the company's success. Pershing Square, which manages around $35 billion in assets, has about 48 employees. Ackman says employees across the organisation, including receptionists and janitorial staff, own company stock worth millions of dollars, Fortune reported. According to Ackman, Pershing Square has not experienced an unwanted employee departure among its small workforce.

"There's not a person at Pershing Square that doesn't own multiple millions of dollars of stock in the company - whether you're cleaning the space or at the front desk or in another role in the company. We believe in taking care of our people," he said on a recent episode of Fortune's Titans and Disruptors of Industry podcast.

The firm also offers an unusually flexible summer arrangement for a Wall Street investment company. Employees are expected to work from the office five days a week for most of the year, but July and August are different. During those months, members of the investment team can work from the Hamptons, with some renting or owning homes there and working together. 

"We look after people, and so that when you operate that way, people don't think about going anyplace else," Ackman said. 

Ackman also points to the firm's focus on employee wellbeing. Pershing Square provides healthy meals, gym access and comprehensive healthcare benefits as part of its workplace package. "I think everyone here feels accurately that they're a big contributor to our success, and the result is we can accomplish an enormous amount," he added.

Hiring for character

For Ackman, keeping employees happy starts with choosing the right people. He says the firm focuses heavily on character and personality when hiring, looking for people who are not only highly capable but also enjoyable to work with. 

"I am a big believer in only hiring people of the highest character, human qualities - people you want to hang out with, spend time with...There are a lot of super talented people, but when you combine a super talented person with great human qualities, that's a great base to build a great culture," he said. 

Who is Bill Ackman?

Ackman, 60, grew up in New York and graduated from Harvard with a bachelor's degree in 1988 before earning an MBA in 1992.

That same year, he co-founded Gotham Partners with fellow Harvard graduate David P. Berkowitz. The investment firm eventually ran into trouble after several investments in private companies went wrong.

In 2004, Ackman founded Pershing Square Capital Management, which went on to become one of Wall Street's most prominent activist investment firms. The company has taken major positions in businesses including Chipotle, Universal Music Group and J.C. Penney. Pershing Square later listed on the Amsterdam Stock Exchange in 2014.