3 ms·
Bear Stearns employee comp is solely about the value the employees provide to the firm. The ones making that kind of money would easily be bringing in a multipl
by hueving 8y ago
Bear Stearns employee comp is solely about the value the employees provide to the firm. The ones making that kind of money would easily be bringing in a multiple of that in sales, etc.
Just because the company got wiped out by a black swan style event means nothing about whether their employees were providing a lot of value to the firm.
- Retric 8y agoNo, it clearly demonstrates that these employees where not creating that much value at the firm. Progressive betting strategies for example can appear to work in the short term, but anyone executing them is destroying value.
- hueving 8y agoJanitors were providing value whether or not Bear's long exposure to MBSs were too large. The same applies to traders, etc. My dentist fixing my toothache still provided value to me even if I die of a massive heart attack in two months.
- Retric 8y agoIf you sum up all work by everyone at Bear over the companies last year, they created negative value. Some lost far more money than others, but Traders as a group where not a net money maker. Really, the company did not die in "100 hours." People just noticed it was already dead.