Magazine Says Top 10 Averaged $68.8 Million : How Best-Paid Wall Streeters Fared
Multimillion-dollar income boosts took the pay of Wall Street’s top executives to new heights last year, as the insider trading scandal damaged the image but not the remuneration for the street’s top talent.
According to Financial World magazine, the 10 highest paid Wall Streeters had average earnings of $68.8 million each, up from $51.1 million in 1985, a gain of 34.5%.
The heavy flow of mergers and acquisitions fueled government investigations but it also pumped up paychecks.
The top income of $125 million went to a senior partner at Lazard Frere who was involved in some of the year’s biggest deals, including the $6-billion buyout of RCA Corp. by General Electric.
The Lazard Frere senior partner, Michel David-Weill, 54, also aided in Burroughs Corp.’s $4.8-billion merger with Sperry and ITT’s $1.25-billion restructuring, as well as the RCA/GE deal.
Another top earner, making an estimated $80 million, is Michael Milken, 41, “junk bond” wizard with Drexel Burnham Lambert.
Milken’s firm drew scrutiny from federal investigators in a widening probe of insider trading. Drexel Burnham Lambert confirmed it received a federal subpoena.
Among others at the top 10 of the list are George Soros, president of Soros Fund Management, which speculates in takeovers and undervalued stocks. He ranked second with an income of $90 million to $100 million.
Richard Dennis, partner of C & D Commodities and a hot-shot trader known for his large contributions to liberal politicians, ranked third with an income of $80 million.
Morton Davis, chairman and president of D. H. Blair & Co., ranked fifth with an income of between $60 million and $65 million. His firm is know for taking small companies public.
After a busy year taking some well-known companies private, the three named partners of the premier leveraged buyout firm of Kohlberg Kravis Roberts & Co. were ranked sixth, seventh and eighth on the list, each earning about $50 million. They are Jerome Kohlberg, Henry Kravis and George Roberts.
Ranking ninth and 10th on the list were Wesray Corp. President Raymond Chambers and Chairman William E. Simon, the former treasury secretary, who earned between $40 million and $50 million.
Others on the list are top executives of major investment banking houses, including Goldman Sachs & Co., First Boston, Shearson Lehman Bros., Morgan Stanley & Co.; Salomon Inc. and Bear, Stearns Cos.
