Ex-Goldman Sachs Trader Says Bonus Cut to $8.25 Million Unfair
bloomberg.com
bloomberg.com
As any trader knows, words mean nothing. This isn't kindergarten.
If you want a bonus guarantee, get it in writing, and stick it on base.
Otherwise, suck it up.
Pit trading changed a lot in the late-90's. And moved to Level-2 systems in office buildings with near real-time access to all ECNs giving a unforeseen level of control and participation (yay tech!). As expected all proprietary traders and everyone else called it the pit.
And sure, GS isn't a pit. But until late 2009 - early 2010 when they wound up most of their proprietary trading business in response to Dodd-Frank they were one of the mightiest pit traders, with multiple seats on every pit, this was beyond their market makers and remote traders.
Their trading activity on CME (Chicago Mercantile Exchange) was legendary. Some would say they had seats on the exchange, other may say they owned the pit (figuratively).
But you're right that still doesn't make them a pit.
That may work as general advise. Don't know how it applies to traders in this situation.
Also this is not about a raise. There are minimum bonuses for proprietary trading with discretionary but previously discussed increases in percentages (bps in this case) for higher performance.
A handshake means way more than words.
Apparently not so in this case. If it ain't on paper, it ain't there.
> Deeb Salem, a former Goldman Sachs Group Inc. (GS) trader who said he helped the bank earn more than $7 billion, wants to be paid the almost $5 million difference between his 2010 bonus and what he told his mother to expect.
Money is the glue that keeps these firms together. If I felt I was legitimately owed this money, I'd pursue arbitration too. I'd rather buy my mom an island somewhere than pad the pockets of Goldman's shareholders with my money.