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2008 options at Morgan Stanley, Natixis, and Goldman all massively in the money

As the chart below shows, bankers at Morgan Stanley, Natixis and Goldman Sachs are on track to do very well out of options issued in the last bonus round.

Since January, the share price at their respective houses has risen 44%, 40% and 35%.

With options issued towards the end of the year and typically priced according to the share price at the time, recipients should be able to realize a healthy profit if the price holds up until they can be exercised.

With most options becoming accessible over a three year period, the profitability of 2008 options may yet prove a barrier to pulling people out of these firms.

As things stand, this won’t be the case at the likes of Citigroup, RBS, UBS or SocGen, whose share prices have fallen since January and at which options issued for 2008 are likely to be underwater.

Percentage change in share prices between 1st January 09 to April 21st 2009

Share price changes.

Comments (7)

Comments
  1. This is valid, succinct and interesting reporting. Keep it up.

  2. Is Natixis the next Goldman?

  3. Finally, a useful article. Good work.

  4. and you dont think that when the options were priced this was not thought of….watch the supposedly Toxic Linked Bonus Banks as well..they are going to make fortunes

  5. Ha. The share options mature in three years which is a long time. Only a handful will be in the money by then – some of those firms would have dissappeared before 2011. Wait for the next two quarter results before starting to pop the champagne. But that said, if CS holds out, those toxic asset backed bonus/options could really make some folks seroius dough!

    Mr. Frank White Reply
     
  6. I concur with the above comments. Its good to see the standard of articles being lifted this week – Sarah must of had a good holiday…

  7. “Is Natixis the next Goldman?”

    they’ll need to learn how to manage trading desks first.

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