Wall street analysts get paid by these CEO/CFO/COO etc. Not directly but indirectly through the bank's relationships. Everyone should know this. They often get "wine & dine" in the best places, get tickets to the key sporting events, strip clubs, and even excursions in the Virgin Islands. Who are these Wall Street analysts going to look after? You and I, common folks who can pay them $15 bucks per trade?
I don't think so.
Unless we really alter the way analysts get paid, this will continue. An easy way is to rank and pay analyst as baseball hitters; monitoring their picks daily, and the highest hitters will be traded at the highest salaries on the street.
Of course, the majority of the analysts will hate this, since most of them suck, lacks the skills to really do the work, gets ahead by kissing asses, or get promoted simply for their looks or daddy runs the whole show, etc...
But for the ones that are really good, they will remain, and we will listen. |
