John Mack Blames Hedge Funds For Excessive Banker Pay

At a Queens University forum recently, the former CEO of Morgan Stanley, John Mack, gave an example of why banks have to pay for talent.

An all star 28-year-old trader earned Morgan Stanley between $300 million – $400 million.

He left the firm for a hedge fund that offered him $25 million – more than twice Morgan Stanley’s offer, according to a Finalternatives report.

He said banks fear a brain drain to better-paying hedge funds.

“I still don’t think the industry gets it,” he said. “The issue is not structure, it is amount.”

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at