Quote:
Originally Posted by CasterTroy
I've always wondered WHAT could someone do that merits THIS kind of pay?
and how I could qualify for that job next
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That probably one of the Merrill Lynch guys
Example of a $5 Million dollar compensation package. Way oversimplified and likely to be laughed at as amatuerish by those who actually get\write up these packages.
Base Salary : $400,000
Stock option: 50,000 shares at 4 under market price (200,000 current value)
Management Option: 60,000 shares at 3 under market (180,000)
Annual bonus: $1,000,000 (in order to earn this you have to meet certain targets...such as bringing in 50 million in new business for the year)
Departmental\Division bonus: $1,000,000 (Your Division meets all targets set at beginning of year....such as bringing in 750 million in new deals)
Retention bonus: $500,000 (Please stay with the company and make us money)
Commision on fees: Lets say for each deal you bring in, say for example a 100 million credit facility for company ABC. the bank will charge a bunch of fees.
If Company ABC touches the money, they pay a million dollar fee.
If they don't touch it...they pay a million dollar fee. there are legal and processing fees. there administrative fees. Big money in fees.
Some guys will get a little % on that.
You can change those numbers around but it's an example of how these compensation packages get to be be so big. Its a combination of lot items.