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If you are responsible and accountable for $5B revenues and associated decisions, won’t you agree you deserve 0.5% of that revenue? This is generally accepted reasonable management fees for things like index funds. Your credit card company or your iOS platform or Uber takes much bigger cuts.


Management fees on index funds are trending towards zero for a reason. Just because it’s generally accepted doesn’t make it correct.

It was generally accepted 15 years ago that paying 2 and 20 in fees for a hedge fund was reasonable compensation.

Then everybody realized that 98%+ of hedge funds aren’t providing alpha and were basically stealing money from the ignorant.

A similar realization will eventually happen on exec compensation as we get more data.


Maybe we should give the president a share of GDP?


Recently I had been thinking what if we pay all elected officials this way, except as something like a multiplier on the median income in the country... GDP growth could be few getting a lot richer or many getting moderately richer.

Their pay increases would be inflation indexed and tied to "rising tides lift all boats"




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