keyhole -> RE: A bit of Justice finally (5/6/2010 4:48:47 AM)
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ORIGINAL: lobodomslavery Very well. But lets get a few things straight. Number one. She did not add value to the company if she did , She would not have been fired. Stuff and nonsense. You say she worked for a brokerage (finanical) firm. In that business, certain positions are not at all like traditional jobs (and given her earnings raise, it sounds like she moved into one of those). When you manage other peoples' and other companies' money, the majority of your pay is based upon performance: whether you increase or decrease the value of their financial holdings. If your stock picks do well and the portfolios you manage for others gain in value, you get more pay--often lots more pay--because the company doesn't want to lose your talent to another firm. And the reverse is also very true. Do poorly, cause your portfolios to lose value for your clients, and you're booted--no matter how much of a superstar you were in the past. It's a very unstable and stressful sort of work to do for that reason. But the fact is that a very significant part of the money that portfolio managers earn is a bonus, kind of like a sales commission, except the only thing they sell ("only, heh!) are their performance attribution stats to the company board once a quarter. They need to convince the firm they work for that they made sound decisions, and why. It's very hard to lie about this sort of thing: the porfolios are either worth more than last quarter or worth less, and no matter what pretty stories you weave around a loss, the fact that there was a loss is what counts most to your superiors. It's a very ruthless sort of business and takes a special sort of personality to handle the stress involved. I don't work in the money-management business but I work around it so I understand a little about how it runs. The starting salary you mentioned is very similar, after the translation to usd, to what starting PM's make in my country. However comfortable it may seem to us, it's considered a bare minimum in that business and the new employee is expected, after they build up their client base, to earn a great deal more. It's just a fact of life: people with a talent for making money for others tend to be compensated very well, so they will continue doing what it is they do so well and doing it for your firm, not the employer next door who is also offering them tantalizing salary/bonus packages. The most likely reason that woman was sacked was because she had several consecutive quarters in which she did not perform well and the investments she managed for others lost value.
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