Yaser Anwar's Q&A with Roger Ehrenberg of Monitor 110 and the former chief executive of Deutsche Bank Advisors:
Y: Even though trading desks account for majority of the revenue, the average trader still makes a lot less than an average investment banker, why this discrepancy when traders generate more revenue than investment bankers?
R: I don’t think this is a game of averages. Rock star traders make way more money than rock star bankers at Wall Street firms, much less hedge funds. I would argue that investment banking is actually “flatter” by its nature than trading, since it is possible to be a competent banker but not a star (and collect a healthy but not stratospheric paycheck) while this is really impossible in trading (merely competent traders don’t last long – they can lose you money fast).
Interview With Roger Ehrenberg, Former CEO of Deutsche Bank Advisors and Managing Director at Citigroup [Investment Ideas via DealBook]