Compensation

  • 04 Jun 2014 at 1:59 PM

Bonus Watch ’14: Junior Portfolio Managers

While their banking brethren received word of compensation with directions to go outside if they had to cry, adolescent portfolio managers at hedge funds did well to quite well for themselves last year, as did everyone else they work with. Read more »

  • 07 May 2014 at 4:08 PM

Glass Lewis Wants To Know Where JPMorgan Gets Off

…paying its top executives like they’re hot shit, when, in reality, they’re no better than, I don’t know, Citigroup. Read more »

As those of you who follow the news out of Newport Beach, California know, the past couple months have not been the best for Bill Gross. First, Pimco co-CEO Mohammed El-Erian announced that he would be parting ways with the bond giant. Then, the Wall Street Journal detailed his “What the fuck are you looking at” management style, in an article that also revealed Gross’s nickname for himself: Secretariat. Next, Reuters refused to print his theory that El-Erian had penned the Journal story himself, and instead made him not look great by quoting him as saying that El-Erian was waging a campaign to undermine him and that ME-E had Reuterswrapped around his charming right finger.” Along the way, people have offered up suggestions re: how you solve a problem like Bill Gross, which have included not investing with him, slashing his $200 million/year salary, teaching him remedial strategies for acting like a sentient human being who would not admonish someone for daring to look him in the eye and, most recently, putting him out to pasture. Read more »

Deutsche Bank reduced salaries and bonuses at the investment bank, which also includes sales and trading, by 14 percent to 5.34 billion euros last year from 6.24 billion euros in 2012, the company said. The compensation fell 23 percent in the fourth quarter from a year earlier. “We are keeping an eye on the competition and the pack that we’re competing with for talent,” Jain said. “What we are doing is something the whole industry is doing at varying speeds.” The bank hasn’t lost a “material” number of investment bankers after overhauling its compensation system, which includes staggering annual bonuses over a longer period, he said. [Bloomberg]

Rupert is said (by a newspaper he owns, so maybe they actually know?) to be shelling out a few million for the $Honey. No word on perks. Read more »

  • 10 Sep 2013 at 4:41 PM

Bonus Watch ’13: Rick’s Cabaret

Former exotic dancers who were employed at Rick’s Cabaret International Inc. are entitled to be paid a minimum wage, said a U.S. judge who ruled that they were club employees and not independent contractors under the law. Former strippers sued Rick’s Cabaret and its corporate parent RCI Entertainment New York in U.S. District Court in Manhattan in 2009, alleging they weren’t paid any salary in violation of federal and state labor laws. The dancers said they instead received money from customers including “performance fees” for personal dances. Publicly traded Rick’s Cabaret argued that it exercised “minimal control” over the women, whom the company said were independent contractors not covered by labor law. Rick’s Cabaret also filed a countersuit for “unjust enrichment” claiming that the performance fees the dancers earned should be counted against any statutory wage obligation of the defendants. U.S. District Judge Paul Engelmayer in New York today rejected the defendants’ bid for summary judgment, or a ruling before trial, concluding that Rick’s Cabaret had “regulated almost every aspect of the dancers’ behavior within the club.” [Bloomberg, Related: Bankers And Traders “Legitimately” Expensing Strip Clubs Do Rick’s Cabaret A Solid]

Richard Lee, the ex-SAC Capital trader who pleaded guilty to insider trading last week, was fired from a rival hedge fund over a bonus-boosting scheme that was uncovered his first day in a new job, The Post has learned. Lee was ousted from Ken Griffin’s $15 billion Citadel Investment Group in 2008 for fiddling with the trading books in a ploy to pump up his payout, sources said. What’s more, it happened during Lee’s first few hours as head of Citadel’s value special situation team, which focused on mergers, according to sources. Lee never made it to a second day. Citadel accused him of pulling profits from other trading groups to boost his own performance numbers, a source said. The 34-year-old Lee, a graduate of Brown University who lives on Chicago’s tony Gold Coast, had been promoted to head of the trading group after the former chief left in March 2008. Citadel has programs to track such changes and Lee was caught within “three hours,” sources said. In a statement, Citadel hinted at the reason for Lee’s firing, saying he “transferred positions” in such a way that it “would have impacted only his potential future compensation.” [NYP]