That's not how people in the industry think about this...
The 31-Year-Old Hedge Fund Star Who Was Paid $119 Million
- Thread starter Banjo
- Start date
Ya, McGoldrick left GS because he netted "only" $85MM on a similar figure. Levin wasn't a partner (didn't buy in). FIG paid Levinson $350MM in stock and it wasn't directly related to performance (retention award). Levin's pay in somewhere between those extremes.
If you scroll to the end of the article it states:
"Levin did not earn a salary last year and was paid $64,617 in cash compensation, an SEC filing shows. Och-Ziff granted 12 million operating Group D retention units to Levin in 2013 that converted into Group A units in May 2013 and vest in 10 equal annual installments starting in January 2014. He also got another 7 million retention units that vest over nine years. In total, Levin held unvested Och-Ziff shares valued at $232 million at the end of 2013, an SEC filing shows."
So, it was all stocks. He didn't even earn a salary and only paid in cash of $64K.
Do you guys know why?
Because capital gains tax rates are LOWER than ordinary income. So he rather took the comp in stocks rather than cash like ordinary wage slaves like us. Smart move.
"Levin did not earn a salary last year and was paid $64,617 in cash compensation, an SEC filing shows. Och-Ziff granted 12 million operating Group D retention units to Levin in 2013 that converted into Group A units in May 2013 and vest in 10 equal annual installments starting in January 2014. He also got another 7 million retention units that vest over nine years. In total, Levin held unvested Och-Ziff shares valued at $232 million at the end of 2013, an SEC filing shows."
So, it was all stocks. He didn't even earn a salary and only paid in cash of $64K.
Do you guys know why?
Because capital gains tax rates are LOWER than ordinary income. So he rather took the comp in stocks rather than cash like ordinary wage slaves like us. Smart move.
And that's fine. I can see their point but I'm speaking on my own personal preferences.
when he generated the $2bn ( a really heart warming number 
), what return did it correspond to?
), what return did it correspond to?Impossible to tell, as his strategy was part of a multi-strat fund.when he generated the $2bn ( a really heart warming number