Hedge fund complaining of crazy pay paid a partner $400m
Is hedge fund pay getting out of hand? Marshall Wace co-founder Sir Paul Marshall thinks so. Yesterday, he complained that the cutthroat market for portfolio management talent means "everybody's getting paid the same as Cristiano Ronaldo." This is, for the most part, hyperbole: Ronaldo earns £177m ($217m) through his Al-Nassr contract; Marshall Wace pays a mere $713k per head on average according to its most recently available accounts.
And yet, someone - or something - there was paid incredibly well in 2022. Those same accounts show that Marshall Wace LLP gave $400m of its 2022 profits to the "member with the largest entitlement." The fund has 22 members (partners), one of which is another corporate entity with five directors, all of whom are also partners at Marshall Wace LLP too.
Pay at Marshall Wace may be set to go up even further. The fund has been levying a 0.75% "compensation surcharge" to enable it to compete with multistrategy funds' pass through models.
For all its complaints about the cost of new staff, Marshall Wace is still hiring. Last month it hired "utilities and energy transition" PM Sjoerd Ramsay de Koning from investment managers Lansdowne Partners, and this month it hired Phillip Koenig, a Goldman Sachs executive director, as an analyst in "global automotive."
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