Nov. 17 (Bloomberg) -- AllianceBernstein LP, a money manager struggling to end a wave of redemptions, will book a one-time non-cash charge of about $560 million in the fourth quarter because of changes to employee compensation.
AllianceBernstein will expense all unamortized deferred incentive compensation awards from 2011 and prior years, the New York-based company said today in a statement. The accounting change will result in an after-tax operating loss for the quarter and full fiscal year, the company said.
“The changes we are implementing are good for our employees, the firm and our unit-holders,” Chief Executive Officer Peter Kraus said in the statement.
Investors pulled $15.4 billion from AllianceBernstein in the third quarter, the company reported in October. The shares have fallen 43 percent this year, compared with a 25 percent drop for the Standard & Poor’s index of asset managers and custody banks.
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