RE: quick question... Last year's pay news:
What's surprising is how the firm changed his pay structure, and how much more Inwentash made than his top employees.
Before 2010, he was entitled to 10% of the company’s “realized per-tax profit,” according to the Financial Post. Now he gets 10% of the firm's growth. The four top execs made $365,000 in total.
Here's how the firm explained the calculation of the new compensation structure to investors (Pinetree is public), according to the Financial Post:
In assessing the adequacy and competitiveness of the chief executive’s overall compensation package … the Compensation Committee reviewed the practices of a comparative group of funds which were chosen based on their size and investment focus, with a view to providing a spectrum of compensation data.
The end number, $34.6 works out to about 10% of the increase in Pinetree’s shareholders equity over the 12 months ended Dec. 31 2010 (with some items excluded from the calculation).
Usually asset managers take around 20% of the firm's profits. The way Inwentash's new structure works, it's as if new asset growth is counted as profit.
Read more:
https://articles.businessinsider.com/2011-05-25/wall_street/30070023_1_top-execs-financial-post-pinetree-capital#ixzz1mToRsSuv