Contract Renege? Say it Ain't so!

AUG 03, 2009
Andrew Hall is a Trader at Phibro, a division of Citicorp. Apparently, he is an extraordinarily successful trader who is reportedly owed $100 million for his performance. I have yet to see anything written that says that this is some mistake or loophole in his contract. I have also yet to see anything written about how much in profits he generated for his company in order for this $100 million to be paid. Presumably, it is some very large multiple of this bonus. In other words, he EARNED this $100 million. Yes, I know that Citicorp received taxpayer money to survive the financial crisis. However, are we not a country of laws? Aren't written contracts the basis for a strong, capitalistic society? In capitalism, either as a vendor, or as an employee, a contract is written such that if the employee, or vendor, produces X, then that employee or vendor gets paid Y. The fact that there is even discussion of not honoring Mr. Hall's contract is outrageous. Yes, it's a lot of money. But he earned it and it's in his contract. If you don't want to pay this much, then don't put it in the next contract. However, since it is likely that Mr. Hall earned some multiple of his compensation for his company, it is also likely that someone else will then agree to pay him this much for the same performance, if not more. Then, the shareholders of Citicorp (all of us, since it Is a taxpayer supported company) are the losers, because an extraordinarily profitable employee will be driven away. If the best performers are afraid to work for TARP supported companies, how can these TARP supported companies thrive, or even survive? Readers out there, from the janitor to CEO, would you like it if your employer reneged on your legally binding employment agreement?

Latest News

Dynasty CEO teases 'Virtual Shirl' as RIA execs debate AI's workforce impact
Dynasty CEO teases 'Virtual Shirl' as RIA execs debate AI's workforce impact

At Goldman Sachs’ RIA conference, Dynasty’s Shirl Penney said an AI clone trained on his emails and speeches could be the first of “hundreds of digital employees.”

Captrust adds $1.25B Pennsylvania firm in latest push into private wealth
Captrust adds $1.25B Pennsylvania firm in latest push into private wealth

The top-ranked RIA by total AUM continues to scale its wealth management arm, bringing its Pennsylvania presence to five offices.

WallStreetBets takes on the SEC — and makes a surprisingly sharp case
WallStreetBets takes on the SEC — and makes a surprisingly sharp case

The Reddit trading community's formal comment letter against the proposal is drawing widespread attention across finance and tech circles.

Frustrated former advisor launches AI-powered CRM with $8B RIA client
Frustrated former advisor launches AI-powered CRM with $8B RIA client

Chicago Partners Wealth Advisors is helping shape the platform's product roadmap after switching from a legacy system.

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline