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...early October, Citigroup sold its commodities-trading division Phibro to energy company Occidental Petroleum. Citi was motivated to dispose of the unit because of pressure from regulators to curtail the pay of Phibro's top trader Andrew Hall, who made $100 million last year, and reportedly has a contract that would award him roughly the same amount in 2009. Oxy declined to comment on Hall's compensation. But the energy giant says Hall will remain with the unit at Oxy. Hall had threatened to leave Citi if his pay was cut, which means Oxy is probably honoring his contract. Says...

Author: /time Magazine | Title: How Citi's Andrew Hall Made $100 Million Last Year | 10/19/2009 | See Source »

...Citi, the controversy surrounding Hall's pay was about whether a bank that has received $45 billion in government assistance should be turning around and handing over big bags of cash provided by taxpayers, most of whom won't make one-tenth of Hall's annual salary in their entire lifetimes, to its employees. But now that Hall has left Citi, a larger question remains: Is anyone really worth $100 million a year, and what exactly do you have to do to deserve that much...

Author: /time Magazine | Title: How Citi's Andrew Hall Made $100 Million Last Year | 10/19/2009 | See Source »

While the amount Hall would have gotten paid is unusual even for Wall Street, how he got paid is not. Hall had a pay package with Citigroup that guaranteed him a percentage of the profits of his group. Recruiter George Stein of Commodity Talent says it's normal for traders to get paid as a percentage of their division's profits. Most contracts guaranteed traders around 9% to 11% of their group's profits, before compensation. What's unusual about Hall is that he reportedly receives as much as 20% of his unit's profits, which sets...

Author: /time Magazine | Title: How Citi's Andrew Hall Made $100 Million Last Year | 10/19/2009 | See Source »

Hall's success in calling the oil market is what has led him to demand higher pay than most. In 2003, Hall had the belief that the price of oil would rise dramatically in the next few years. Back then, oil was trading at around $30 a barrel, and coming out of a recession few thought prices would rise anytime soon. So Hall bought so-called long-dated oil-futures contracts that would pay off if the price of oil topped $100 at some point in the next five years. Because Hall made a bet oil would reach a price...

Author: /time Magazine | Title: How Citi's Andrew Hall Made $100 Million Last Year | 10/19/2009 | See Source »

...Martin isn't alone. With the unemployment rate hitting its highest level in more than a quarter-century, a growing number of the nation's jobless are striking out on their own to pay their rent and put food on the table - some doing freelance and contracting work, others launching full-blown independent businesses...

Author: /time Magazine | Title: Jobless Entrepreneurs Face Tax Minefields | 10/16/2009 | See Source »

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