The gap gap.
The top 5% of hedge funds have increased the gap between the amount they pay traders and what Wall Street firms offer, recruiter Ilana Weinstein said.
'The chasm there is great, and maybe it’s time to stop comparing the sell-side to the buy-side', Weinstein, founder of IDW Group, said in a Bloomberg Television interview with Erik Schatzker and Stephanie Ruhle. 'It’s never been bigger, that divide'.
The biggest investment banks, including New York-based Goldman and Morgan Stanley are setting aside a lower portion of revenue for employee pay amid regulatory pressure and shareholder demands for higher returns.
Greg Fleming, president of Morgan Stanley’s wealth-management division, told Bloomberg Television, however, that the top hedge funds represent fewer than 10,000 people and are not a good comparison with the bigger firms.
'Morgan Stanley has a lot of people, we’ve got 55,000 employees and we’ve got a lot of people working with clients, doing a good job for those clients, and they’re well compensated for those roles', Fleming said. 'It’s apples and oranges'.