Comment: “Risk-based compensation” a more equitable approach
| Jan 14th, 2010 | Filed under: Guest Posts, Today's Post | By: Guest |
|
Over the past few years, it has become clear to many that raw performance-based compensation for hedge fund managers has significant flaws – from its asymmetry to its inability to distinguish between skill and luck. Various tweaks have been proposed (as you can see in our section on fees). But here is one idea that integrates several dimensions of risk with traditional performance metrics. Eric Hirschberg is the CEO of the Bermuda-based fixed income manager Orion Investment Management. He also advises on compensation, resource allocation, portfolio structuring and risk management issues, and is the founder of the blog KapitalMarks.com. More…
To continue reading this article please login (at the right) or click here to learn more about accessing our archives.
