$570 million a year - that’s the average salary for the top 25 managers in the industry, according to Alpha Magazine. The top three managers took home over $1 billion each. Find the top ten 2006 hedge fund earners here. The funds earn fees for managing money and share in any gains made from successful strategies.
The 57 percent rise in hedge fund manager earnings last year comes as shareholders pressure corporate boards to get control over rising CEO pay. Washington is also responding to complaints over rising pay for top executives. The House of Representatives last Friday approved the “say on pay” bill to give shareholders the right to cast nonbinding votes on the pay of top company executives.
What do you think? Is the massive pay for top performers in the hedge fund industry good for the markets or the U.S. economy?
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I’ve got a hedge outside my house and I invite offers to fund it - starting at $500 million.
- Posted by ChrisWhile I do not believe that any CEO brought in to run an existing company is worth the amount of money being paid, Traders who earn a percentage of the profits they generate are in a different category.
- Posted by peter hindrupThat said I believe that the regulations governing trading funds needs to be tightened up significantly.
This shows the true value of the dollar to the rest of the world. When other economies see what a sham the US dollar really is, I believe a huge crash could be the consequence. Remember Enron? Preceived value is often is often just that, mere perception. We may someday soon see ourselves paying $100 for a quart of bottled water, because that’s all a $100 will buy. Almost 2 million dollars a day in pay, even on days off? The concept of money is totally faith based. These occurences destroy that faith. At least it does mine.
- Posted by rolby