Pimco’s $1.5 Billion 2013 Bonus Pool

How much compensation the folks at Pacific Investment Management Co., better known as Pimco, haul in each year has always been a topic of fascination on Wall Street.

In 2012, news reports suggested that the firm’s top 30 partners “pulled down an average $33 million a year in compensation in recent years.” A subsequent column by Felix Salmon guessed that the average investment professional at Pimco was making “roughly $7 million each” annually.

A Pimco spokesman denied Salmon’s claim, responding that “The numbers cited in your blog post today are wildly inaccurate.”

Salmon’s speculation was, indeed, wildly inaccurate — to the downside. Actual bonuses at Pimco are higher, much higher, than probably any outsiders previously believed. Based on news reports, public records and new data obtained by Bloomberg View, it appears that Pimco had a 2013 bonus pool for its 60 managing directors of almost $1.5 billion.

So how much have Pimco’s top executives earned? According to documents provided to Bloomberg View by someone with knowledge of Pimco’s bonus policies, the numbers break down like this: Gross earned $290 million as his year-end bonus for 2013. Mohamed El-Erian, Pimco’s former chief executive officer and one-time heir apparent to Gross, received $230 million (El-Erian is a fellow Bloomberg View contributor).

And the story doesn’t end with Pimco’s two most visible (former) employees.

Continues here

Category: Finance, Really, really bad calls, Wages & Income

10 Friday Reads

Busy day today — be sure to check back at 7am for some breaking news. Meanwhile, our morning train reads: • How pensions make investing too complex (Fortune) • They’re Old, They’re Rich and, Too Bad for the Economy, They’re Kind of Tight (Bloomberg) see also Everybody’s Favorite New Myth About Millennials: They’re Bad at…Read More

Category: Financial Press

2015 Corvette Z06: Faster than Lambo, Ferrari or McLaren

This HAS to be my next bargain auto purchase: Source: AutoWeek From AutoWeek: The 2015 Chevy Corvette Z06 will come out of the box with a sub-3-second 0-60 time and sub-11-second quarter-mile time. That puts the approximately $80,000 Z06 on par with the outgoing $180,000 Lamborghini Gallardo, the $1.5 million Ferrari 599XX, the $1.2 million…Read More

Category: Weekend

The Return of the Dollar

The Return of the Dollar John Mauldin November 13, 2014     Two years ago, my friend Mohamed El-Erian and I were on the stage at my Strategic Investment Conference. Naturally we were discussing currencies in the global economy, and I asked him about currency wars. He smiled and said to me, “John, we don’t…Read More

Category: Currency, Think Tank

Louisiana is drowning quickly

Source: ProPublica

Category: Science

10 Thursday PM Reads

My afternoon train reads: • What the stock market can teach you about your own personality (The Guardian) • The End of De-Risking: Alternative managers are fighting for their business by creating novel ways to de-risk—but are these nontraditional avenues better than liability-driven investing? (Chief Investment Officer) • Three Hidden Red Flags for Stock Investors (Barron’s) •…Read More

Category: Financial Press

The World’s Wealth in 2014

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more after the jump

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Category: Digital Media, Markets, Wages & Income

Why Are We So Focused on Everyone Else’s Wealth?

You all the know urban legend of the conversation between F. Scott Fitzgerald and Ernest Hemingway. Fitzgerald: “Let me tell you about the very rich. They are different from you and me.” Hemingway: “Yes, they have more money.” It never happened, but it points to an interesting question: Why are we in America so fascinated with…Read More

Category: Hedge Funds, Wages & Income

Today in 1929: Dow hits YTD low at 198.69

Today in 1929:

The stock market hits its low for the year as the Dow slumps to 198.69, off from its yearly high of 311.90 on September 3. The carnage in individual stocks is far worse: AT&T closes at $197.25, down from $304 on September 3; General Electric ends the day at $168.13, versus $396.25; Westinghouse closes at $102.63, a loss of $187.25 per share since September 3.

Source: This Day in Financial History

 

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Category: Markets

10 Thursday AM Reads

My morning afternoon train reads: • Stock Returns After Periods of Above Average Performance (Wealth of Common Sense) see also 52-Week High and Momentum Investing (Alpha Architect) • Michael Lewis: Extreme Wealth Is Bad for Everyone—Especially the Wealthy (TNR) • “Bear’s Anonymous” Finance’s Answer to A.A. (Cassandra Does Tokyo) see also A final purge to…Read More

Category: Financial Press