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Pimco Paid Gross, El-Erian Over Half A Billion Dollars In 2013 Bonuses
And a stunner just out of of Bloomberg:
- PIMCO PAID GROSS $290 MILLION BONUS FOR 2013, DOCUMENT SHOWS
- PIMCO PAID FORMER CEO EL-ERIAN ABOUT $230 MLN BONUS IN 2013
More from the source:
Pacific Investment Management Co. paid its former Chief Investment Officer Bill Gross a bonus of about $290 million in 2013, a year in which his Total Return Fund trailed a majority of peers, according to documents provided to Bloomberg View by someone with knowledge of Pimco’s bonus policies.
Mohamed El-Erian, 56, the former chief executive officer who previously shared the title of CIO with Gross, received a 2013 bonus of about $230 million, according to figures first reported today by Bloomberg View columnist Barry Ritholtz.
By comparison, Laurence D. Fink, CEO of BlackRock Inc., the world’s biggest money manager, received $22.9 million in 2013 compensation, and Michael Diekmann, CEO of Pimco’s parent Allianz SE, was paid 7.2 million euros ($8.99 million), regulatory filings show.
“While Pimco does not comment on compensation, the figures provided to Bloomberg are not correct,” said Dan Tarman, a spokesman for Newport Beach, California-based Pimco, declining to specify the firm’s objections. “For more than three decades, Pimco’s managing directors have maintained a substantial interest in the firm, currently 30 percent of profits, and this provides an important means to attract and retain the best investment talent to serve our clients.”
...
Gross’s bonus -- 20 percent of the total bonus pool for 2013 -- places him in a compensation class of his very own. To put that figure into context, in 2013 Gross made just shy of what the next 20 publicly held finance company CEOs made combined.
In context:
Which begs the question: is one valued more on managing the world's largest bond fund (excluding the riskless Federal Reserve LLC hedge fund of course) and by its performance, or lack thereof, or on being the "straight to CNBC/BBG" pundit-slash-diva-slash-columnist-slash-blogger, i.e., marketer. Or an even bigger question: for that money can't one come up with more credible "departure" reasons. Recall:
A globally-respected financier has revealed that he quit his job running a $2 trillion investment fund after his young daughter wrote him a note pointing out that he had missed 22 landmark events in her life.
Mohamed El-Erian's ten-year-old told her dad that he had skipped her first day of school, Halloween parade, her first soccer game of the year and many recitals because he was too busy at work.
The California-based investment guru's resignation in May 2013 shocked the financial world. However in a recent interview, Mr El-Erian, who made $100 million in 2011 alone, explained that his young daughter and wife Jamie were at the heart of his decision.
...
In an essay for Worth in June, El-Erian, 56, explained his decision. He said: 'About a year ago, I asked my daughter several times to do something - brush her teeth, I think it was - with no success. 'I reminded her that it was not so long ago that she would have immediately responded, and I wouldn’t have had to ask her multiple times; she would have known from my tone of voice that I was serious.
One wonders how many Americans dads would miss every event of their child's upbringing for a tiny fraction of that bonus, and further to that, perhaps that very question is at the core of why there happens to be just a little "resentment" toward the bailed-out US financial class in the past 5 or so years.
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they earned it.... :-)
If someone is managing $2 trillion then yeah they need to be fucking good.
They also pay a lot of tax so we should all be thankful.
It doesn't take more work to manage more money. It's just extra zeroes you mook. He also has inside information from the Fed. That money should all go to taxes because he didn't "earn" any of it.
They didn't pay them for their performance, they paid them to leave.
There's another profession that works that way, too, but it escapes me at the moment.
That's just gross
Nobody's worth that much
Bangin7GramRocks,
Exactly. As long as liquidity is not an issue (which in DM bond markets it isn't) and as long as position sizes are not concentrated, then managing a $5 billion bond fund or a $50 billion bond has a lot of similarities. So, some funds can be scaled up.
Some other product types have constraints, like US small caps, when a US small cap fund grows very large it hits liquidity issues and therefore trading issues going in and out of some names.
"That money should all go to taxes... "
I think this was a mis-statement since everyone knows that the gov use of taxes is so highly efficient...at progressing the politicians own goals - none is used for the GOOD' of the people in any meaningful way.
Damn software and duplicate entries...
Amen to that
Can you say, "bail ins".
just spewed waffles out my nose.....El Arian is the most simpleminded motherfukka out there. He has to dodge his mental shrinkage when on CNBC by talking expansively about the NY Jests at every opportunity like arabs care about American football. I wouldn't give a nickel for his opinions.
They are not worthy this money at all!
Retirement is a Ponzi scheme to enrich few at the cost of many.
Go ahead. Spread the Kool-Aid!
I agree. As far as I am concerned it is stealing from investors. Some little grandma has a couple of dollars in an investment vehicle which invests in their Ponzi scheme.
Nothing more, nothing less.
Someone got Bilked for this juice. I'd say it was other investors, but I'm not in the game.
I didnt realize this was socialist hedge. If you're pissed about what he is making, go start your own Pimco and pay yourself the same.
In 2013 I asked my Bossman for a bonus and he looked up, “Me not firing you Loki is your bonus.”
I mumbled, “Yes, Dad.”
I crawled out of his office quietly. Unfortunately, there no nepotism where I work.
"Do you see what happens, Larry?"
#AntiPerformanceBasedCompensation/EfficientlyBrokenMarketsDasKronyKapital/HankGreenberg+AnthonyMozilo[×]Zproject
If it had come as a result of their own risk taking prowess I would be happy for them. But it came from me - my paycheck was diverted to them by force. The IRS will cage me or murder me if I try to resist.
So yeah, I hope these guys DIAF.
Arrest them and feed their underserved gains to the starving children.
‘starving children’
Um, no child was left behind, Bush made sure of it.
In case you didn't get the memo......Bush has been gone for 6 years now.
Not sure who to complain too.....do any of you guys know?
It will make you feel better about these two if you close your eyes and imagine them burning in hell for eternity. Just be sure you aren't there to actually witness the agony.
If anyone was more deserving of a nailgun accident...
Don't have any problems with such reasons to leave.
Have massive problems with such remuneration.
And spill no tears for Fink, Diekmann or any other greedy mf.
Did someone say something abot gross bonuses?
Burn 'em down, every last bailed out mother-fucking one.
http://www.thedailybeast.com/articles/2014/11/13/uk-reporter-s-anti-bank...
The USA is missing something. It is all about the "American Dream" and $.
Social media and porn watching are high, so is binge drinking and drug abuse.
The children are missing their parents. Parents may have coin, but their kids don't know them.
Quality of life is not about coin.
When you drive the freeways, look around you. One person usually in every car. No one knows their neighbors.
Take a look down South, they may be poor, but they take their chldren and family everywhere with them.
So, the question to ask is "why?". Are people that frail or impressionable that a corrupt media can force them to have immoral ambitions? And why would the media be so evil as to constantly put immoral temptation before them?
It reminds me of the Arthur Godfrey monologue "If I were the Devil".
We now expect out political leaders to be corrupt, our government and media to be evil, our sports "so called" heroes and media stars to be unthinking uncaring self-absorbed immoral and addicted trash. (How glamorous)
It is as if those in charge are trying to prove to us how bad and worthless we are instead of building us up and giving us every opportunity to do well.
We have a society in decay, but it is a society wherein we have been led into decay by the hand, by very evil people/beings. Even though the temptations are great, we have a choice. Please look in the mirror.
We all have choices, desires, temptations.
I played the game at one time in my life. Forgoing all for "work".
It is the system. We look down our noses at other societies because they do not believe in working 51 weeks in a year. Theyare "lazy" the people in the USA claim and not #1.
#1 at what?
Building top notch "defense" systems? Irony is they don't even work. Look at the USS Donald Cook when that su-24 shut down all the electric defense systems in September, leaving it a sitting duck. Cloak and dagger, high paid NSA, CIA and so on operatives with big budgets people have to support? Let us face it, what does the USA have to fear? Friends to the North and South and a big ocean on each side.
There are a lot of issues within that big country Other countries have problems too, Methinks they should take a hard look with some common sense to change attitude.
It won't happen as the true God in the USA as with a lot of places is $.
Join a support group for testicular cancer victims. Find a nice girl there.
It kind begs the questions:
1. How did 2013 performance and bonus compare to previous years?
2. Who made the decision? Was it the two of them or did the people making the decision get a fat check for making the decision?
3. Did the two of them get together and say: "Hey, lets take the schmucks who invest with us for a big check and then get the hell out of here."
I don't care how much one manages. The incremental value of the dollar management effort falls to zero at a pretty low level.
IMO, these guys are thieves. But then again pretty much all of Wall Street is as well. It does not make it right.
Ridicolous, all for the skill set of front running the Fed like some insider mobster.
Pimco clients, you are the ultimate muppets.
In a different world, those who manage to take down unimaginable sums as compensation would not be looked upon with such despisement.
Instead, when I read about some preposterous sum of money being awarded to anyone, I always look to who the other side was in the transaction.
Whether it is a CEO, sports phenom, actor, financial manager, etc, the real people to blame for the amounts offered are those who creaed the contract or signed it for the payer.
Someone at PIMCO or a committee came up with or agreed to the terms to pay out this money.
Those human beans are NEVER even mentioned, but hidden behind a corporate name.
It's long overdue to find out who was responsible for structuring the offers. Those are the men and women who deserve to have their names placed in infamy.
You always hear about the $ 235,000,000 Nardelli was paid to leave Home Depot a decade ago, but not one name from the compensation committee that structured his exit package is ever revealed, should he fail.
And when we find the perpe'traitors' let them know that I'd like my $200 million too. Don't be mad at me for cashing such a big check. You would do the exact same thing. Or would you tear the check up and throw it away because you're not worthy and there are starving children in Africa who could better use the money?
"A globally-respected financier has revealed that he quit his job running a $2 trillion investment fund after his young daughter wrote him a note pointing out that he had missed 22 landmark events in her life.
Mohamed El-Erian's ten-year-old told her dad that he had skipped her first day of school, Halloween parade, her first soccer game of the year and many recitals because he was too busy at work."
Nothing wrong with this at all and just like so many of us who agonized over our family situation because we had to work. However........I didn't just make $200 million the year before, enabling my financially painless exit to spend more time with the family. Money doesn't solve our problems, but the solutions money provided El-Erian are much more comfortable than mine.
It's one thing to actually earn something through risk, work, and struggle. It's another to have Bernanke give you green showers leaving taxpayers with the bill. Fuck these guys and all the fuckers that got bonuses since 2009 at the various TBTF banks, GM, AIG, foreign banks, Central Banks, and the fucking Federal Government.
They want people to take the bait so that they can have an excuse to kill us. And they want to make us believe that we are deserving of punishment and death ... but they are the corruptors and evil and we are mostly just trying to eek things out and have some control over our own lives.
Now, living through it, it seems clear that the fall of societies does not happen by accident or as a natural result of the nature of flawed human beings. It is actually managed in a conscious way by those at the top who have a choice and decide to DRIVE it into the ground and move on.
Parasites kill the host and find another.
Video was talking about this, seems like an unusual source but makes some good points and has insight... though think he is Keynesian.
Michael Hudson 41:50 minutes in. US is not prepared to be poor and can't rebuild quickly, US forces Dollars on other countries or we might kill you, how countries can spend dollars
http://www.youtube.com/watch?v=E4lfu5bu0r8
the world is very sick and no one cares
People do care.....about themselves. The sicker the world becomes the more we tend to naval gaze. Few of us would take from ourselves to help others if it endangered us. Greed in just another form is a function of percieved scarcity.
Fear can be a source of greed.
- Fear of not having enough
- Fear of not being perceived as worthy
- Fear of loss of control
I am undecided on whether fear actually plays a part in the sociopathic evil of those who want more, and unethically take from others so that they can enjoy a higher position and laugh at the suffering of others (while pretending to be their benefactors).
Nice. They did repack and sell the school loans. He earned that money.
let it burn
Sure, after they are gone? duh! They did not care.
They are letting it burn and stole the jewels on the way out the door. (or to use a 9/11 analogy... they stole the gold before dropping the building down on top of the vault.)
The actual stakeholders of PIMCO should be very angry and should make their lives a living hell in retribution. But good people are not like that, only the self-important sociopaths.
One gold coin will equal a skyscraper. We wait for our turn at the wealth trough. We’ll show them!!!
Do you really believe that? So sad! The rich also have gold and much more of it than you. They will still be rich, but you may finally crawl into the middle class. Have fun wishing for Armageddon.
Simply amazing. James Turk in his book The Money Bubble mentions this is what happens when you have a fiat currency. The complete degradation of morality and huge wealth disparities are nothing but a consequence of the Fed, and unbacked dollar and corrupt .gov.
This is indeed sickening! Sharpen your pitch forks!
‘This is your life, good to the last drop. It doesn’t get any better than this.’
Simple explanation. Bond bubble hush money. Think about it.
r >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> g, bitchez!!!
Jack Ma said…. But he looks weird. LOL
Uncle Sam must have got 100 million from both of these guys. That's why he is OK with it.
Aaaarrrrrhhhh ... share the booty mates.
I get it, a bit of outrage at these figures, so that we turn a blind eye to any of the others on the above list. They are all obscene.
Makes no difference if it is split between 20 of these tools or one bags it all.
Get the ropes.
It kinda shows how sad things are when people sell their lives for 100 million and I don't even know what I'd do with 100 million except buy real estate I don't need and wouldn't use and a large portion would go to buy financial products of one kind or another because there would be nothing else to do with it.
Why not give 100 entrepreneurs a million dollar grant and see what they do with it? In terms of real wealth buying and creating, it would do much more. Why not give 100 million to local boots on the ground charities? That would probably do more for helping the world than condos in New York and some fucking ETF.
Maybe the bubble is bigger than I thought. 90% of money is tied up with just bullshit.
That's just ridicolous.
But of course these guys, and their buddies, are worth every cent of their incomes.
Nothing changed since Stoneage.
Just different time, different masks, clothes, stuff, ....
The sheeple, that let it happen, since thousands of years, are still the same dumb, lazy and ignorant sheeple as ever.
To quote Lord Helmet. "Evil always wins because good is stupid".
But good (the sheeple) are not really stupid. They are just not sociopathic and therefore have a different system of morals and values than people like Gross and Wall Streeters.
Most people would not mind being wealthy and do not mind working hard to get it. But they will not sell their souls and make others suffer so that they can have the loot. They will not steal and defraud or try to rationalize an irrational self-worth.
In my book there should be a sane limit for incomes in general.
No limit just supports relentless (and of course legalized) plundering of this planets resources. Where as I think also humans are resources.
Would there be limits - say 10 millions or maybe even 20 or 30 - this planet would look quite different.
Right now it's just - the race to insanity.
The real question is whether he is 145,000,000 times better than the average worker in the US. My guess is he can't lift a box, dig a ditch and bleeds red like the rest of us...
They probably do not have any real technical skills and only minimal social skills.
The numbers are so absurd, there really is nothing to say, as there is probably nobody to say it to.
And numbers like that are simply the equivalent of bullseyes when the time comes...
Instead of getting pissed off at these two criminals.....stop and think that the list of 22 criminals equals 3/4 of a BILLION $$$$$ , that's with a B !!! For just 22 human beings.....for just one year !!!..somehow I don't think 22 would survive a claw back if 300 million took it all from them.....instead we sit here and type !!!!
Sub-par returns - That's the most salient point in the article. Their compensation makes no sense in relation to their lack of value-added.
Value Added?
Since when did Wall Street add ANY value?
Wall Street is about skimming wealth , i.e the true value added work product of the populace represented by money which is supposed to be a store of value.
Get out of Wall Street's clutches and go physical-gold silver, farmland, lead, anything! They are robbing us blind!
I consider it "asshole tax".
Too big to not bonus. How many pension fund will go broke to pay financial wizard bonuses...so they can lose money. The pyramid of stupidity!
Kim K made $85 million on her new mobile app just slapping her big ass name on it...and literally doing nothing! These guys at least have to show up to work.
WTF !
Unfucking believable!
UNFUCKING BELIEVABLE!!!
These compensation numbers are shameful and disgusting. If you are also sickened by this, and you have funds invested at these firms, consider moving the money to smaller asset advisories.
I guess over at PIMPco, they keep sayin' "You know it's hard out there for a pimp"
And since I am on a roll (although no responses) Mohammed El-Arian's crap about missing his duahghter's landmark events...what a bunch of crap! What about parents who work hard making minimal wage and have to miss their kids "landmark" events? They don't get any sympathy/publicity.
And his kid is probably so spoiled rotten that nothing is good enough for her anymore. She probably will complain because she feels she has to have a full media coverage of every single event in her life.
But nevermind all that. What a face saving piece of bullshit to justify what is essentially: " I have made a lot of fucking money ripping off investors, and now I need an excuse to make off like a bandit whbile I still can and hide my stash."
Beats robbing a 7-11.
As for taxes -- the pretend monopoly money with better paper and printing -- 102% was donated to their favorite make believe charity. Taxes? Try zero.
simple explanation, they made a sex tape.
that's a lot of hookers and blow