Here is a different different style answer than most, I looked over the situation.
Stevie has about 225 guys and you are paying them 1.5 mil each. That adds up to something and he uses what he doesn't pay to the OPM group to come up with the cash.
I looked at what kind of money it would take an individual to earn either the 1.5million or the 3 million.
I also looked at Liz's estate account which we just activated last week because she wanted to. Think of it as her family's advisors being told we would handle it for them for her interests. Today we had a pow pow at their request. The consequence is that they are going to redo all the trades (the commission part ,etc..) and they will move the account from their offices that can't handle it and place it in the home office where they have appropriate staff. It went on for about a week and we went through three different account execs, etc...
So there it is.
All the topic is about is: what is the comparison of running trades with an amount of capital or running trades using a pool and getting paid a given amount? All with consideration to the environment you are in.
The pool profits that Stevie uses to do the salary of 1.5 mil to a bunch of people is earned entirely differently than how a person trades and individual account to make twice the paycheck so to speak.
Liz's story above just points out that any person operating from home who is keeping active taking the potential of the capital she has, has to be able to deal with the market in a way that is unusual to the regular broker type account person. We are familiar with electronic trading as well, but I am referring to a local estate type account that is common to a local community.
The daily pay at Stevie's is 6,250 that goes into your personal
operating budget.
At home, the deal is to pay yourself 12,500 out of you account daily.
Either way, my view is that some of that cash flow would wind up in an investment account and part of it would be traded either way.
When I worked, I did make daily calls to my broker.
I looked at the home deal and decided to put money into earning 1.5 mil for operating a budget like steveie's employee would and the other 1.5 mil I earned from home would be just letting it ride and compounding.
Running the numbers put me at a starting point where I would have to be running a little under 11,000 shares of an averge 3 beta stock on day one (think 25 dollar stock)
I've done the cocktail circuit and the sailing stuff out of Greenwich and I think that crowd is not too attractive compared with just going electronic at the home office and staying loose in Tucson. I'll let you know in a year.
