Very true about Cayne. Over the last 5 years, he was paid $150MM. Also, NY Times real estate section reported he recently closed on a $25MM co-op apartment and paid cash.
Well, they must have had some cash handy to pay for those Maseratis and upper east side Manhattan apartments. That is no small change.
Many of the multimillion dollar bonuses on the street are paid in cash -- not stock or options. My cousin got a 2.4 million dollar bonus (he was 23) from his firm (he's a quant derivitives trader) two years ago and was given various options on how he wanted it paid. He took a check. The reason a firm pays a trader millions is so he doesn't jump ship. They frequently have choices offered to them. They want the good ones to be happy. they need them to stay.
if those traders and bankers didn't make a killing from the liquidity bubble blow up they didn't deserve a dime in bonuses.
I call...No way he worked for a major investment bank in the US and got an all cash bonus.The poster who wrote that as much as 40% goes into restricted stock at a 25% discount is correct. I know you are bluffing as you cousin would need an MBA to trade derivatives at any major investment bank,which would imply it was his first full year after coming out of the training program.Do you expect anyone to believe that a trainee got a 2.4 million dollar CASH bonus??? Next
In his case it was a smaller shop not a major. His boss and two others left a big firm and set up on their own. They structured a compensation package for him that they expected would compensate him in the half million range and the firm and he had a blowout year. They offered him equity but he took the cash and brought a loft in Tribecca. I see people on here are very quick to think someone is lying. Why the would I bother to lie to you. I didn't even know you existed until five minutes ago ... lol. BTW ... he stopped his education after prep school. Never even went for the BA never mind an MBA. In his case you are talking about an incredibly bright and talented kid. If you think everyone on the street gets equal treatment (I remember when Lewis Ranieri -- he invented mortgage back securities -- was leaving Salomon. My guess is they would have paid him in diamonds to stay) is just rediculous. To think everything is a cookie cutter in an industry that has creativity in it is just foolish. All you can say is what is in your range of experience. Fully 95% of it is an assembly line. But the other 5% has a very flexible rule book.
His father has served on a hospital board for many years that has a number of high level investment bankers on the board. He had a top flight introduction backed up by a brilliant mind for math that I'll never comprehend. Connections are there to be used in life if someone is fortunate enough to have them. He is fortunate.
My cousin worked at Renshaw in biotech underwriting and his bonus was always paid in cash. Of course it was a private shop at that time.