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Gleacher & Company, Inc. Message Board

  • sellplg sellplg Feb 17, 2013 10:36 AM Flag

    82% Comp Ratio - This is a Sick Company

    Our comp to revenue ratio for the fourth quarter was 82%, which was impacted primarily by the company’s decision to pay year-end bonuses in the form of cash. And making this determination, the company considered a variety of factors including the dilutive effects of granting stock-based compensation when trading at a significant discount in relation to tangible book value, which is currently up 60%. Compensation also includes $1.2 million of compensation guarantees principally incurred in the MBS & Rates division in connection with the division’s rebuild.

    While we continue to target a 60% ratio, it will be meaningfully higher and in excess in 70% when measured based upon current run rate revenues in our remaining businesses post the ClearPoint sale. Our non-compensation expenses were $20.6 million for the fourth quarter and included $700,000 of professional fees incurred in connection with our strategic review. Year-to-date costs incurred were $3 million. Non-compensation expenses excluding these costs improved by approximately $1.5 million and are related to reduce consulting expenses in connection with the company’s asset management initiatives.

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7.60+0.05(+0.66%)Aug 31 12:20 PMEDT