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Finextra
04-06-2025
- Business
- Finextra
Asic shares industry feedback on tthe future of Australia's public and private markets
ASIC today released more than 50 public submissions received in response to its discussion paper on the evolving dynamics between public and private markets, released in February 2025. 0 The paper examined the health and future of Australia's markets, including the growth in private markets, the decline in public listings, and the growing significance of superannuation funds. ASIC continues to meet with domestic and international stakeholders and has received almost 90 submissions. The responses have been overwhelmingly positive and reflect the views of industry bodies, market operators, superannuation trustees, fund managers and other stakeholders across the finance sector. ASIC Chair Joe Longo said the agency was closely considering the submissions to inform its next steps. 'ASIC has a mandate to drive financial system performance and improve investor confidence. 'ASIC wants both public and private markets to thrive and flourish - together, they drive more investment, more opportunities for companies to grow, and more jobs for Australians. 'I was encouraged by the breadth and richness of the responses we received, which recognised this is a timely discussion that will shape the future of Australia's capital markets. We heard our markets are strong but changing, and that public and private markets must complement, not cannibalise each other.' ASIC has distilled the feedback into themes, which are shaping further work and thinking, including learning from international experience. These include: Structural and cyclical factors are shaping both public and private markets Public market adjustments would improve and enhance their attractiveness Private markets are here to stay and grow, there is an acknowledgement of the need for any regulatory guidance to be measured, working closely with industry and aligning to international standards Private credit is good for the economy and investors, if done well. There may be work to do to ensure it is sustainably done well Superannuation is a mature investment force in Australia and a significant and structural influence in markets and investment More to do on data collection and transparency of private markets including in dimensioning the market itself and learning from international practices. 'I thank everyone for their feedback; ASIC is listening. We have noted a range of insights and actionable ideas, including streamlining IPOs and disclosure requirements. We will carefully consider the requests for urgency to improve the attractiveness of Australia's public markets, as well as the caution expressed in submissions to move carefully in adjusting any settings in private markets. 'We look forward to announcing the adoption of some of the proposed actionable ideas and will share our roadmaps for public and private markets in Q3 and Q4, respectively, this year. This work will be supported by further feedback from stakeholders, our ongoing surveillances, and views from market experts in the coming months,' Mr Longo said. Background On 26 February 2025, ASIC released a discussion paper which explored the changing dynamics in capital markets in Australia and abroad, including declining listings on public markets, the rapid growth in investment capital allocated to private markets and the growing significance of superannuation funds in markets. To further support its markets work, ASIC has commissioned the following expert insight papers on: the future state of Australia's capital markets; the private credit environment; and international approaches to data and transparency in private markets. ASIC's work will also be informed by current surveillance activity of retail and wholesale providers of private credit and private market managed investment schemes. The discussion paper followed ASIC's report, Equity market cleanliness snapshot report (REP 786), released in July 2024. The market cleanliness report showed Australia's listed equity markets have continued to operate with a high level of integrity and remain consistently among the cleanest in the world. The report provided a broader context for the findings in Report 787 Review of Australian equity market cleanliness: 1 November 2018 to 30 April 2024 (REP 787). ASIC's Moneysmart website has information for consumers about how to choose the right investments to reach their financial goals.
The Independent
22-05-2025
- Business
- The Independent
Come back to the office or risk bonus cuts, HSBC staff told
HSBC staff in the UK have been told that they must return to working in the office for at least three days a week, or their bonuses could be cut. A memo sent to staff noted that those 'consistently not meeting 60 per cent office attendance will be considered in an individual's overall performance assessment, which could lead to variable pay being impacted'. While the company already had a hybrid working policy for three days per week attendance, the introduction of the data-led attendance role call is intended to support management in overseeing compliance with it. From September it will now contribute towards overall assessment of variable pay, with managers given data on a monthly basis over those who fail to hit the 60 per cent target. Around 24,000 people work across the company's high street and commercial bank divisions around Britain. It is the latest crackdown on working from home in the finance sector, with more banks demanding staff return to the office. Senior bankers at Lloyds were told at the start of this year that bonuses could be cut unless they spent a minimum of two days a week in the office, while JP Morgan wanted staff back in the office full time from March. Around the same time, Barclays upped their in-office attendance requirements from two days to three. James Gorman, chairman emeritus of Morgan Stanley, has previously criticised employees wanting to work from home too frequently. 'They don't get to choose their compensation, they don't get to choose their promotion, they don't get to choose to stay home five days a week,' he said in a 2023 interview. 'I want them with other employees at least three or four days.' JP Morgan CEO Jamie Dimon has also said it is important for younger employees to learn from seniors in the office. 'I'm not against people not wanting to [work in the office], but what they will not do is tell JPMorgan what to do,' he added recently.
Forbes
09-05-2025
- Business
- Forbes
Million-Dollar Careers, The Elite Seven Figures Club
Many people want to succeed in their careers. Some struggle, and others find ways to do well. There is a small segment of the population who were able to amass financial fortunes for their efforts. Earning an annual income of $1 million or more is a remarkable achievement. This milestone is attainable, but rare. Less than 0.5% of U.S. households earn over $1 million annually, according to the U.S. Census Bureau data and recent payroll analyses. In high-earning regions such as the San Francisco Bay Area, only about 0.54% of employees reach this threshold. Certain industries are constructed to produce high earners. A confluence of factors like economic dynamics, market demand, having the right skills and being in the right place at the right time helps. The finance sector, encompassing the stock market, hedge funds, and private equity, is a money generating powerhouse. Hedge fund managers who oversee portfolios with assets exceeding $250 million can earn between $500,000 and $3 million annually. This is how it works. Hedge fund managers traditionally are compensated under what is called a "2 and 20" fee structure. This entails a charge of a 2% annual management fee on the fund's assets under management (AUM) and a 20% performance fee on the fund's profits. As their portfolio grows, the higher the payout will be for the manager. According to Institutional Investor, Ken Griffin, founder and CEO of Citadel, earned approximately $2.6 billion in 2023, making him the third highest-earning hedge fund manager that year. The 2024 North American Private Equity Investment Professional Compensation Survey by Heidrick & Struggles indicates, private equity managing directors and partners typically earn total cash compensation including base salary plus bonus, ranging from $700,000 to $2 million, depending on fund size and performance. Private equity (PE), including firms like BlackRock, is an investment strategy in which PE acquires stakes in other privately or publicly held companies, with the goal of increasing their value and then selling them off for big profits. Investment banking Managing Directors (MDs) at bulge-bracket investment banks such as Goldman Sachs and Morgan Stanley, facilitate large deals like mergers and acquisitions, and initial public offerings (IPOs). If successful, this can earn total compensation packages that exceed $1 million per year for the MDs. This includes a base salary typically between $350,000 and $600,000, with bonuses often matching or exceeding base salaries. Real estate is another lucrative area. Top agents in luxury markets like Los Angeles earn huge commissions on multimillion-dollar properties. Luxury real estate agents in Los Angeles and similar markets, typically earn commissions ranging from 2% to 3% per transaction. For a $10 million sale, a 3% commission would be about $300,000. Agents who hustle to sell these high priced homes can hit the one million or more level. However, commission rates are often negotiated, and for high-value properties, agents may accept lower percentages. Professional sports and entertainment mint millionaires through their talent. Elite athletes in the NBA, NFL, and MLB secure contracts worth tens of millions of dollars annually. For example, LeBron James earned a salary of about $48.7 million in 2024, according to Forbes. Additionally, his total earnings, including endorsements, reached around $128 million. LeBron's endorsement deals alone are estimated at around $80 million annually. A-list actors and entertainers mirror this. The Screen Actors Guild (SAG) is a US-based labor union for film, television, video games, and commercial performers. Their rates of $2,000–$3,000 per day could potentially total millions. The real big money is in the blockbuster movies and television serieses. Well known actors stars like Dwayne Johnson can earn $20 million per film, per industry data. Influencers and media personalities, like Jim Cramer, can make millions through TV deals and sponsorships, with continuing fast growth in the influencer creator economy valued at $250 billion in 2024 per Goldman Sachs. Entrepreneurship offers a way to wealth. Founders in tech, and Silicon Valley Venture Capitalists can hit it big. Also, mom-and-pop retail, or services can scale to businesses making million-dollar profits. About 1% of U.S. small business owners, roughly 300,000, achieve this annually, per IRS data. Healthcare, especially highly specialized medicine, enables seven-figure incomes, with top neurosurgeons and cardiac surgeons often exceeding $1 million in private practice. This is driven by demand for life-saving procedures, per a 2023 physician compensation study. Corporate leadership is a significant driver, with S&P 500 CEOs earning a median of $17.9 million in 2025 (projected from Equilar's 2023 figure of $16.3 million), while the top 100 CEOs at firms with over $1 billion in revenue reach a median of $32 million. The highest earners, like the low key profile Jim Anderson, the head of Saxonburg, Pa.-based company Coherent, which makes equipment and products for networks and laser systems, is the new highest-paid CEO in the U.S. with a total salary of $101,497,009 for 2024, according to executive intelligence company Equilar. Moon shots like Elon Musk, heading Tesla, SpaceX, the X-platform, Neuralink and other endeavors may potentially be hitting $1 billion in stock and incentive based pay or more. The tech sector is a major contributor to high earners. Typical compensation packages for senior software engineers and managers at top tech firms like Google, Meta, and Apple, ranges from $200,000 to $500,000. With stock appreciation, stock grants, bonuses and restricted stock units (RSUs), compensation where an employer grants shares of company stock, which vest over a specific period, tied to performance or time with the company, could propel the total package into the seven figure club. Some tech titans who are in a hot space, such as AI, can see $1 million and more in a strong year, often due to large equity grants, RSUs or stock windfalls. One underappreciated factor in these careers is the power of leverage. In finance, earnings scale with assets managed. $1 billion at a 2% fee nets $20 million for the firm, a chunk of which flows to the manager. Tech professionals leverage equity, where RSUs can multiply total compensation during market booms, though this ties earnings to volatile stock performance, a risk often overlooked. In real estate and entrepreneurship, leveraging loans or investor capital can amplify returns. Timing is another critical element. Finance and tech professionals thrive in bull markets, while athletes and entertainers face short peak earning windows. LeBron James' pivot to a business empire exemplifies the need to diversify early. The path to $1 million is filled with setbacks. This includes failed startups, market crashes, athletes getting injured. Hollywood stars lose their luster or get bad investment advice can quickly make a person lose their one million plus compensation.
