Zhang doesn`t say it, but the advantage of Citadel`s non-competition is that you usually get paid while you sit out of the market and mix baby food. The downside is that Citadel politicizes its policy quite wildly. In 2009, Citadel Mikhail Malyshev, former boss of his high-frequency trading company, paid $30,000 a month to stay in the market — but when Malyshev tried to start his own company during the non-compete period, Citadel sued him. Oh, and another thing. Your employment contract usually involves “notice periods”. If you stop, at most you will be immediately locked up, so you no longer have any work to do, but they have “notice” that must be superficial so that you can do important work. You will often only impose the notice period as a means of artificially extending your non-compete clause. Usually, it`s 30 days, but I`ve seen her up to three months. Like everything else around non-competitions, it`s total, but Wall St. is filled with mucous balls. Get used to that. Two years is not forever and one could say that Zhang is lucky to have this time with his family. While he seems to be making the most of it, he is also visibly a little upset about the situation.
Under his current employer, he is listed: “My wife.” In addition to the non-competition, it says: “Lifetime”. Hedge fund companies Brevan Howard and Citadel have been involved in non-compete disputes with former employees. Institutional Investor reported in 2015 that Brevan Howard co-founder Chris Rokos filed a lawsuit against the company to cancel a deal preventing it from setting up its own hedge funds five years after he left. They ended their disagreement. The Citadel case shows the importance of language in non-competition agreements and the prohibition of debauchery of a company. As the First District of Citadel said, if these agreements do not contain language that provides for an extension of the prohibition period, it is unlikely that the courts will grant such facilitation, even if the court finds that you are entitled to enforce the non-competition clause.