
Why did a hedge fund manager worth $700M take a $630k job managing an oil fund? - dybber
https://www.institutionalinvestor.com/article/b1mr3g654h58lp/Why-Did-a-Hedge-Fund-Manager-Worth-700-Million-Take-a-630-000-a-Year-Job-Managing-an-Oil-Fund
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peteretep
Interesting read. In answer to the question, the claimed response is:

> [Managing Norway’s sovereign wealth fund is my] dream job ... a higher
> purpose than just working in a normal bank. You should be proud of working
> for your country

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Hydraulix989
Why wouldn't they comp this guy more? He clearly has a penchant for pulling
money out of a hat.

On the flip side, why wouldn't he just volunteer, given his stated true
intentions?

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smabie
Even if you don't need the money, from personal experience, volunteering is a
bad road to go down. For better or worse, money is equivalent to respect, and
without an income, you garner no respect.

What astonishes me is that anyone would want run this fund for a long period
of time who isn't already very wealthy. When your boss of a two pizza team is
earning more than the head of a 1tn fund, you know things are fucked up.

Compensation should be in the tens of millions, at the very least. Unless of
course some egalitarian image is more important than the money that the entire
country depends on.

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JanSt
When your boss of a two pizza team is paid more than $600k they are probably
overpaid?

He seems very capable and is ready to work for that (still good) money. Do you
think paying someone tens of millions would improve results for the fund? Why
should it?

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Akababa
It's about supply and demand. If he really is the best person for the job,
then there's nothing to be gained from paying him a higher fixed salary. But
if there's someone else who's even marginally better that you can get for
$10M, it's probably easily worth it - for the size of the fund, one person's
pay is a negligible amount.

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JanSt
That's pure theory. How do you know who is marginally better?

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Akababa
That's the fundamental problem of hiring: you have to make educated guesses
about who is going to make a better employee. And you should be willing to pay
more to hire someone who you believe is better. For some companies, salaries
are such a small part of their revenue that it makes sense to offer some
candidates a lot more... and if your first choice happens to accept a lower
salary, it doesn't really matter - you've saved a drop in the bucket.

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totalZero
I find it fascinating that anyone could talk about a $630k position like it is
not one of the highest-paying jobs on earth.

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paxys
$630k/yr is definitely not among the highest paying jobs in the world.

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sgt
Well you are certainly in some kind of <1% percentage globally. Wouldn't you
agree?

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paxys
Sure, but 1% globally is still like 80 million people. When you are managing a
trillion+ dollar fund which controls a nation's economy, you likely want to
stand out a bit more from a mid-career Google engineer or B-list celebrity.

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thinkingkong
I love when people suddenly realize people make decisions that are
economically irrational and cant figure it out. Its like dividing by 0 for 90%
of the population.

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fallingfrog
Was it just me that became nauseous at the description of the lavish party
where all these powerful people get to live like aristocrats? Disgusting.

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harry8
"Worth $700M"

Why did this person not put more money first? It isn't obvious that you can't
spend $700M? Neither can your children and grandchildren.

Long before $700M money ceases to be valuable to you. At all.

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peteretep
> It isn't obvious that you can't spend $700M?

That's far from clear. For example, from the article, turns out Sting costs
$1m for a private performance. You could get a private concert on Saturday
nights, and in 15 years, your money is all gone...

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harry8
I double dare you to listen to a sting album every night for just a month
while considering 15 years of it.

You really can't spend that kind of money. So what do you want to do with it?
What do you want to do with your time? Time which is a resource of yours that
_is_ actually scarce when you have stupid money so it is not scarce at all.

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peteretep
Plenty of other artists will come and give you a concert and want a huge chunk
of change for it

> can’t spend that kind of money

Right but this really really isn’t true

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bfred_it
I think it’s less about being able to spend the money (of course you can) than
_needing_ to spend it.

Do you really need a 100-million yacht and a 20-bedroom villa? No.

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harry8
Both of those probably retain some value. Property may appreciate.

I really don't think you guys have thought this through. All your suggestions
on how to spend underline that it's basically impossible, even when that's
your object rather than enjoying it. So now who are you giving money to? It's
the only thing you can do with it. Children, good works, politics, immortality
via a wing of an art gallery is popular. A building at your University...
Gates is trying to rid the world of disease.

When i say you can't in not making euphamisms. You just can't. Lay out a
serious plan that you would want to try and spend it and you see it's not
practical or even close.

Replace Sting with every artist you like and think on the logistics of it. It
doesn't work. Rival Leno's Garage. Only stay in 5 star hotels. Private Jet. 5
mansions on different continents go nuts. Your idea of no expense spared, lap
of luxury. Price it up for 70 years worth.

