It’s about time the inventors of the formulas designed to high-speed trade demanded higher pay.
Traders usually make a lot of money from trading because they have profit-sharing agreements with their employers.
The algorithms they use are created by back-office techies’ who meanwhile are paid by salary, like Jeffrey Gomberg.
According to Forbes:
Jeffrey Gomberg, 32, worked for a trading firm that paid him a low-six-figure income after four years on the job. His trader colleagues, by contrast, made millions manipulating the algorithms he’d written.
Many programmers are immigrants or were hired out of college and make $80,000 to $150,000 a year.
Making “low 6 figures,” Gomberg felt used. So he and a fellow programmer quit and made a deal with HTG Capital Partners of Chicago. Now Gomberg keeps 40% to 80% of net profits and retains ownership of the code he writes.
“We designed this deal so we wouldn’t lose intellectual property,” he says. “If it doesn’t work out, we can go somewhere else and take all the software [that we developed]. That’s really the key.”
HTG Capital Partners’s owner, Christopher Hehmeyer, strikes an interesting deal with programmers.
If a programmer brings money with him, and puts up at least $250,000 to become an HTG partner, Hehmeyer hikes his percentage of the take.
As a result of the sweet deal, Hehmeyer is blowing up right now. He told Forbes he gets three to five inquiries a week from high-frequency programmers looking for better gigs.