Over the weekend, I learn an acquaintance was recently recruited (together with the rest of his team) to join a new hedge fund by Goldman Sachs.
The package he got was nothing less than amazing, in the millions per year. Considered he is probably one of the mid-level guys offered from his team, you could imaging what his peers or boss is offered.
Although they are paid a lot more than many of the listed companies executives, such pay package is not really unusual for Goldman Sachs. Afterall, if the team can manage a 50% yearly return on more than US$1b fund, they more than deserved it.
Warren Buffet once said that Wallstreets is probably the only place that US$1m is considered tips.
What is unusual is that such pay are normally exclusive to Americans and Wallstreets bankers, it is coming to Singapore (or Asia in general) but still within the Ivy League clique. A retired banker friend said that such pay is unheard of in his time. Not in the dotcom days and definitely not before that.
One reason for this is obviously the money is flowing to Singapore and Asia. Serious lots of money.
As money flows here, fund managers (esp. those who can managed good returns using OPM, other people money) is going to pay very well. Where money flows, the economy will follow. Follow the money, follow the growth.
Anyway, congratulation to my friend. Wish him all the best in his new job at Goldman Sachs.
1 Singapore government has provided excellent system for funds to operate out of Singapore.
2 Seriously for those who complains about widening income gaps in Singapore, how do you narrow the income gap between someone who has an MBA from Havard managing US$1b fund and another who has an ITE diploma? Thats the new reality in Singapore now.
