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To: nihil who wrote (70338)12/30/1998 1:52:00 PM
From: GVTucker  Read Replies (1) | Respond to of 186894
 
nihil, RE:<<How do brokerages pay analysts? Base salary + (company profit) bonus + stock options? Do they have incentives based on how well they predict movements and levels of their babies? What happened to Kurlak's former VP-lackey? He gone bye-bye last I looked. Do they get commissions from firm institutional sales?>>

Salary + bonus, rarely stock options, although this is becoming more commonplace in the past couple of years. The bonus is primarily determined by how much commissions the analyst can generate for the salesforce. Although performance of the analyst's recommendations is part of the bonus calculations, it is far smaller than the commission measurement, which is logical when you think of it in the short term mentality of Wall St. After all, a good analyst who is a bad salesman generates much fewer profits for a company than a bad analyst who is a good salesman. In the long run, this is most probably not true, but, as is oft repeated in Wall St, in the long run, we'll all be dead.

Oh, and as far as Joe Osha is concerned, (TK's 'lackey') has been given a set of stocks of his own to cover at Merrill. His most recent opinion is an initial neutral opinion last week on CNXTV.