The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Did Bill Gross Really Pay Himself $200 Million Last Year?  Reuters Investigates Not Rated 3.0 Email Routing List Email & Route  Print Print
Tuesday, July 31, 2012

Did Bill Gross Really Pay Himself $200 Million Last Year? Reuters Investigates

News summary by MFWire's editors

This weekend the New York Times gave Pimco's Mohamed El-Erian a long profile, but Felix Salmon of Reuters writes that the story still doesn't get to the bottom of a few Pimco mysteries. First, he wonders, did El-Erian really make $100 million last year, as the Times claims? And did Bill Gross really pay himself $200 million?

Well, "that kind of payday is within the realms of possibility," Salmon writes, but given that Gross finished 2011 with a performance in the bottom 10 percent of his peers, "it's hard to see how he could justify extracting $200 million from Pimco's investors."

Salmon fact-checks several other claims that Times reporter Geraldine Fabrikant makes, casting doubt on her assertion that El-Erian is a mediocre trader and had a poor record running Harvard's endowment. But the main problem with the profile, according to Salmon, is that it doesn't address the really big issues surrounding Pimco. Is El-Erien being groomed to replace Gross? What will happen to the firm when Gross retires? And does these two traders' big media push distract them from their money-management duties?

But the most fascinating question involves the firm's rivalry with BlackRock. To wit:
Finally, and most interestingly, how did Larry Fink manage to amass twice Pimco’s assets under management despite the fact that Bill Gross, the greatest bond investor of all time, had a more than 15-year headstart on him? What is the story of Blackrock vs Pimco, and how is it likely to play out in future? In order for Pimco to effectively compete with Blackrock, will it too have to go public? (Incidentally, Fink was paid $21.9 million in 2011.)

Edited by: Chris Cumming

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2021: Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2021
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use