QuoteOriginally posted by: granchioQuoteOriginally posted by: NoniusQuoteOriginally posted by: granchiook I admit I got carried away by my own rethoric (and boredom). I agree their expected value should be higher than zero.When I say that I mark them to 0 in the course of my day to day life, I mean for example when checking my balance sheet to see if I can afford to buy a house or similar big-ticket item. That is because the chance of actually not getting them is real (it is true that most IB's will match with equivalent shares, but that is not the case with most hedge funds, and at some point you might even want to leave finance, god forbid )just enter into a prepaid employment-linked forward with your favorite equity derivatives desk. I'm sure someone could work out a solution to monetize that puppy for you.sure. compliance would love that...I've asked very detailed questions about this at compliance briefings before 'Can I short our Stock"."No""Can I synthetically short our stock through forwards""No""Can my Brother short our stock""Yes"."OK, thanks, that will be all I need for now."

QuoteOriginally posted by: granchioQuoteOriginally posted by: NoniusQuoteOriginally posted by: granchioQuoteOriginally posted by: NoniusQuoteOriginally posted by: granchiook I admit I got carried away by my own rethoric (and boredom). I agree their expected value should be higher than zero.When I say that I mark them to 0 in the course of my day to day life, I mean for example when checking my balance sheet to see if I can afford to buy a house or similar big-ticket item. That is because the chance of actually not getting them is real (it is true that most IB's will match with equivalent shares, but that is not the case with most hedge funds, and at some point you might even want to leave finance, god forbid )just enter into a prepaid employment-linked forward with your favorite equity derivatives desk. I'm sure someone could work out a solution to monetize that puppy for you.sure. compliance would love that...hmmm, I see....well, big shit management types at (at least) non-bank entities enter into pre-paid forwards to capitalize, er, at least, restricted stock....maybe it doesn't map so nicely...alas it doesn't map to my case (the "shit" maybe, the "big" surely not )the interesting thing is that on the other side the companies are hedging their compensation program. so the whole exercise is a waste of time: the big players and the company hedge, only the small fry are left f*ck*d in the middle. the small fry of course are the one to which the MBA shit about "paying you in stock will make you work harder" applies the least...I can improve my PL nearly to the sky before it has an impact on the stock price, while of course the CEO might regurgitate some ill-thought comment on taking over monster competitor and bang we goyes, indeed, compensation program hedging...a nice little cottage industry for some desks...yes indeed.

Quote-Of course, if a trader does have an office it's mandatory to fill it with random garbage (cardboard file folders from departments that got outsourced six years ago are good) to prove that you really belong on the floor. LOL. And piles of CVs, and expensive designer coffee-making equipment that never gets used, and some green plastic moving crates that have never been unpacked.

QuoteAnd in my experience, every time you move firms, your new firm gives you a signing on bonus designed to compensate for the loss of any stock. They in cfact base the starting bonus on precisely the amount of stock that you forego by moving.As I understand it in London: you leave Bank A, leaving behind say $350k of stock and go to bank B. I've just left bank B, leaving behind $280k of stock. I join bank A, with a lovely $250k starting bonus; you get a splendid $375k starting bonus; the impact on each bank's bonus pool that year is microscopic. It's a merry go round. I think traders too often worry about the vested stock and allow it to influence them into staying at somewhere they'd otherwise leave.

QuoteOriginally posted by: slevinQuoteOriginally posted by: NorthernJohnWhich way isn't it right? Too high, or too low? Sounds reasonable to me.To low, i'd say. if these are real, why would anyone ever join the military? Given that an MD after a fellowship in anesteziology can make upward of $250K, why would anyone want to get a contract with the army?Army is not a career. It's a service. You don't join the army to make money. If you want to make money any how, become a trader. Buy, sell; Sell, buy; Or become a cocaine trafficker (this requires some brains!). Regards