Some investment bankers are complaining that they are under-compensated with $100 million pay packages, when their pay is compared to that of hedge fund and private-equity fund managers.
"It was not long ago that $10 million was considered to be an excessive pay package," states Bruce Ellig, author of the 2007 update of the bestseller, "The Complete Guide to Executive Compensation. "It was big news when Revlon President Bergerac received a $1 million bonus in 1974," notes Ellig. "Five years later, Business Week reported the top-paid 25 executives all earned more than $1 million in 'total pay.' And in 1984, Business Week reported the pay bar for the top-paid 25 executives was $1 million in 'annual pay.'
"Since then, the DJIA average has moved one decimal place to the right, so it's not surprising that executive pay packages heavily loaded with stock options made a similar move. Now, in less than half that time again, hedge fund and private equity managers have shifted the decimal point once more: $1 million, $10 million, $100 million.
