Yesterday, Felix Salmon of Reuters wrote a post questioning PIMCO’s pay structure, since Bill Gross stated in last year that “I’m just having a bad year. This year is a stinker.” Despite the poor year by Gross’s admittance, he took home about $200 million.Gross placed in the bottom 10% of bond-fund managers for 2011. Given that, it’s hard to see how he could justify extracting $200 million from Pimco’s investors, or three times the record $68.5 million that Lloyd Blankfein was paid in 2007.
Twitter user and trader @Dutch Book, who blogs at Stone Street Adviors, took issue with the post, explaining that Gross does not pay himself, that PIMCO CIO Mohamed El-Erian appears on T.V. and writes op-eds to help bring in money for the firm, and that Felix was asking “An astounding amount of clown questions bro.”
Felix read the post, and began his rebuttal by calling Dutch Book an “anonymous troll.” Felix also implied that Dutch Book is one of the “far too many overconfident frat boys with overstuffed paychecks” that encompass the financial world. Via twitter, Dutch Book gladly accepted the latter charge.
Now, we await the rebuttal of the rebuttal from the Stone Street Advisor.