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{{a|myth|{{image|Ironmountain1|jpg|}}}}{{d| | {{a|myth|{{image|Ironmountain1|jpg|}}}}{{d|Employment derivatives|/ɪmˈplɔɪmənt dɪˈrɪvətɪvz/|n|}} | ||
A financial instrument developed in the early part of this millennium by derivatives pioneer and perennial boiler of pots, {{author|Hunter Barkley}}. | A financial instrument developed in the early part of this millennium by derivatives pioneer and perennial boiler of pots, {{author|Hunter Barkley}}. | ||
{{Drop|W|hen midway through}} his customary annual rant about the meaningless of his life and meagreness of his pay packet, it struck Barkley — an amateur [[fi-fi]] novelist and financial services naturalist — that just as the variable cost of his own employment was a material, and largely unhedged, contingency in his own life — Barkley believed himself, rightly, to be short a very ugly [[option]] to the Man — so too was everyone else’s in modern finance and therefore, on the other side of that trade, but on a greatly levered magnitude, were banks’. | |||
A good-sized bank, he reasoned, would have an annual ''variance'' in employee compensation, without accounting for any ''changes'' in employment, in the billions of dollars.<ref>The maths was like so: assume 40,000 people at an average total compensation of about $300,000, with a ratio of discretionary to fixed of between 20% and 50%</ref> | A good-sized bank, he reasoned, would have an annual ''variance'' in employee compensation, without accounting for any ''changes'' in employment, in the billions of dollars.<ref>The maths was like so: assume 40,000 people at an average total compensation of about $300,000, with a ratio of discretionary to fixed of between 20% and 50%</ref> |