CROs just went from nerds to ballers.Thanks to the financial crisis, these quants are some of the highest paid execs on Wall Street right now.
Five years ago, a Chief Risk Officer “typically reported no higher than the CFO,” according to Bloomberg.
Now, CROs not only report to directly to the CEO, they’re getting paid up to $10 million, “compared with $500,000 as recently as 2001,” according to Bloomberg.
So we wanted to introduce you to these ballers, the people on Wall Street who are tasked with preventing their firms from becoming the next Lehman Brothers. Check out the people Demi Moore will soon memorialize in Hollywood when she plays one in the upcoming movie, Margin Call.
Dossier: Laughlin joined BofA last year to head the unit that holds most of the 'troubled assets largely inherited from the bank's 2008 Countrywide purchase.' He's a former FleetBoston Financial Corp. exec.
Compensation: BofA's former CRO, now CFO Bruce Thompson, earned $11.4 million in 2010, so that indicates the payday Laughlin is looking at.
Dossier: Became CRO in 2006. Formerly Morgan Stanley for all of financial career. Earned a B.A in economics from Brown and an MBA from Harvard.
On his role: 'Leach said it's expected he'll have a seat at the table when Chief Executive Officer Vikram Pandit makes key decisions. A decade ago, a bank risk executive often wasn't in the room, he said.'
Dossier: Has been CRO since November 2007. Before he joined JP Morgan, 'he was a private investor and was Chairman of the New Jersey Schools Development Authority.'
Fan Club: There's a Facebook group called the Barry Zubrow Fanclub. It has 41 members, was started by a Dartmouth student, and the tagline is: 'Barry Zubrow is the man.'
Dossier: Before joinin Soros, Kulsar was the Head of Firmwide Risk at JWM Partners.
Dossier: Was formerly a partner at Duff Capital Advisors, and founder of Polsky Partners, before which she was head of client financing services and head of leveraged client channel with Merrill Lynch, and also worked for Morgan Stanley. She has a degree from NYU.
Compensation: Earned $2.08 million last year, and reports directly to John Thain.
Dossier: He's been CRO sinc 2007, and before that was the Chief Credit Officer. Joined Goldman in 1985, and before that worked for Chase Manhattan Bank. Has a B.A. in economics from the College of William and Mary.
On Goldman's risk practice during the crisis: 'The level of risk in Goldman Sachs's mortgage portfolio during the housing bust was 'a matter of expert judgment' and the result of complex data-crunching,' Broderick told Senators.
'We have all learned valuable lessons from recent experiences. However, we believe that the core elements that make up our risk management framework were broadly effective despite the unprecedented turmoil in the markets.'
Dossier: CRO since 2006. Been with Wells since 1986. He earned a B.A from the University of California at Berkeley.
On recovering from exposure to the mortgage meltdown: Loughlin said the bank expects a 'higher than normal' level of foreclosed assets in the near term as it resolves bad loans, in February this year.
Dossier: He's been CRO since 2006, before which he worked for Morgan Stanley. He earned degrees from the Indian Institute of Technology and the University of Maryland College Park. He has an MBA in Quant Finance.
Risk and running: He had a time of 33:01 in the JP Morgan corporate challenge.
Dossier: She was made CRO this year, and from 2008 to 2010, she was CRO at State Street. Between 1996 and 2002, she was the CRO at Lehman Brothers, and previously worked as the European Treasurer for Morgan Stanley. She has a B.A in Russian and German from King's College.
Not just a bank auditor: She's on the Audit Committee of the Boston Symphony Orchestra.
Dossier: Before being made CRO, he was the co-founder and co-head of BlackRock Solutions, BlackRock's risk advisory business. Before BlackRock, Golub was a VP at The First Boston Corporation. He earned an S.B. and an S.M. in Management and a Ph.D. in Applied Economics and Finance from MIT.
Risk writer: He's written a ton of articles, and a book, about risk, including 'Risk Management: Approaches for Fixed Income Markets' and 'New Benchmarks for Debt Instruments: No Room for Nostalgia in Fixed Income.'
Dossier: Before Fortress, he was the founder and CIO Deister Capital Management; Senior Portfolio Manager at Integrated Finance; a Director at Swiss Re 'where he established the firm's long-short credit trading'; and worked at Deutsche Bank. He earned degrees from Harvard Business School and Universität Hannover.
On easily managing risk: 'Increasing liquidity in many companies increases the accountability for credit risk. Risk is not a God-given thing. It is something that can actively be managed.'
Dossier: Veteran of Credit Suisse, made CRO in 2007. Formerly headed Treasury Sales and Derivatives Sales, among other roles. He earned a PhD in Doctorate in Economics from the University of Zurich.
On not like being told what to do: 'On the subject of Swiss National Bank's Philipp Hidebrand's comments that the big Swiss banks will need to beef up their capital ratios, said: 'We manage banks according to Basel II, not Hildebrand I'.'
His power to inspire fear: 'To get a sense of how the portfolio was doing, the firm's risk manager, Adam Katz, came round twice a day to deliver a printout of each position. The mere sight of Katz making his way to Paulson's office sent the hearts of Paulson's team a-flutter.'
Source: The Times
Dossier: CRO for more than seven years. Before Caxton, he worked in risk at Morgan Stanley, and was an Economist in the Division of International Finance of the Fed. He has degrees from Harvard and Stanford.
Source: Capital IQ
Dossier: He's been CRO since 2006; he joined Deutsche in 1996. Before that he was with Credit Suisse. He earned degrees from the University of Berne.
Early days: In 'his first professional experience' he was 'assistant to the President of the Swiss Federal Banking Commission.'
Dossier: CRO since 2004. He joined the bank in 2002, before which he spent most of his career at JP Morgan.
Compensation: Last year, it's thought that Le Blanc and two others 'thought to be retail banking boss Antony Jenkins, wealth management head Tom Kalaris... shared £20.6m in salary, bonus and long-term awards.' So, about $33 million, divvied up in some way.