The arguement in both cases is that if someone is doing something useful in a market (like price discovery) they'll be paid according to how useful they are. An

The arguement in both cases is that if someone is doing something useful in a market (like price discovery) they'll be paid according to how useful they are. And if their pay exceeds the cost then they'll profit. If not then your guy (or girl, or other descriptor) isn't useful and you're paying them from your picket. But it's your job to check and move your money accordingly. And you'll be paid for doing so, and penalised for not doing so. If your active manager beats the index (in returns and risk) after fees then he is earning his keep both for you and the world in gen