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Article: Rainmakers Rule The 20-80 rule holds for investment banking compensation in 2003.
- Article from:
- Investment Dealers' Digest
- Article date:
- March 15, 2004
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When Goldman Sachs Chief Executive Henry Paulson was quoted last year as saying that 20% of the people added 80% of the value at Goldman, there was such an uproar that he immediately retracted the statement. Politically incorrect or not, that sentiment pretty much sums up the way Wall Street looked at compensation for 2003.
The top 20% of investment bankers got the heftiest pay packages last year, with some rainmakers earning triple what they received in 2002. The other 80%? Some of them got no increase, or even a cut in overall comp. With investment banking bonus pools only 5% to 10% fatter than those of 2002, there was no other way to keep the top guys happy.
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