no wonder macbank shares are down

From the Herald:

There has been a lot of talk over the years about the Macquarie model - the trust structures it established to house the vast number of businesses it bought and then managed, which poured huge fees back into the parent company.

But the real model related to executive pay. After all, it's not called the Millionaires Factory for nothing.

Take this one deal as an example. It recently sold its stake in the property group Macquarie Goodman for a $300 million pre-tax profit. In this sort of market, it was considered a coup.

But the way the bonus system is structured, the proceeds are likely to be divvied up as $40 million to the taxman, $90 million to the shareholders and, wait for it, $170 million to the employees.

So, the shareholders put the money up and take the risk. But the employees get the bulk of the reward.

No wonder the shares are down.