Hedge Fund Salaries and “Fairness”

August 30, 2007 |

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Dealbook reports on a couple of new studies that whine about hedge fund manager salaries being out of whack with the rest of the workers in the United States:

Last year, the top 20 hedge-fund and private-equity-fund managers earned more in 10 minutes than United States workers made the entire year, according to a report released Wednesday by two advocacy groups.

HFL says: Notice how these “advocacy” groups like to single out the top 20 hedge funds.  What about the other 8500 hedge funds out there?  Guess they don’t count.

According to the study, that dwarfs the discrepancy between chief executive officers and workers: Corporate chieftains, on average, earn about 365 times the average pay.

The Institute for Policy Studies is a nonprofit research group that promotes alternatives to the “corporate-driven approach to globalization.” United for a Fair Economy, based in Boston, “raises awareness that concentrated wealth and power undermine the economy” and corrupts democracy, according to its Web site.

HFL says: Let me clarify this for you … The Institute of Policy Studies and United for a Fair Economy are nothing more than socialist front groups determined to destroy the capitalist system.  Groups like this like to hide behind euphamisms.  It is always about promoting “fairness” and “preventing the corruption of democracy.”  But really its about taking your liberty and controlling how successful you can be.  No wonder they are out to get hedgies.

The study’s authors said top hedge fund managers are making more in a fraction of an hour than a typical worker makes in a year. According to the study, hedge-fund chiefs average $12.6 million a week, or $210,700 an hour based on a 60-hour week. That’s $35,100 every 10 minutes, compared with $29,500 a year for the average worker.

HFL says: Horror, the horror.  None of these nitwits can make over $35K per year.  No wonder their pissed off.  They want diamonds like Percy Walker has — Oh, but that would mean having to go out and earn it!  Nevermind.

Sarah Anderson, a director at the Institute for Policy Studies, supports a Congressional move to close the loophole allowing private investment managers to pay lower tax rates than ordinary Americans.

HFL says: Of course she does … because she’s a socialist.
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