Billy Salomon

Strategic Concepts & Mechanics

Cornerstone MoveOutsider Aggression as Market Entry

Cornerstone MoveTake the Pay Cut, Take the Risk, Take the Floor

Signature MoveSell Too Early, Never Go Broke

Signature MoveConviction Without Compromise

Capital StrategyBonuses Locked as Skin in the Game

Strategic PatternSchumpeter's Prophecy as Battle Cry

Signature MoveAll Capital Locked Inside the Ship

Risk DoctrineInflation Punishes the Poor First

Identity & CultureAthens Warning for Comfortable Democracies

Signature MoveInstill Faith Others Can't See in Themselves

Operating PrincipleControls as Volcanic Pressure

Primary Evidence

"Our futures, as well as the success of the firm, were intertwined. Billy Salomon had wisely structured a unique compensation system. Salaries were actually quite low,4 but at the end of the year Salomon Brothers would distribute bonuses, based on how the firm as a whole had performed. However, we could draw only 5 percent of our capital, which meant the bonus money was invested with the firm. Consequently, the fate of the partners was directly linked to the success of Salomon Brothers, which fostered a clannish connection within that boiling cauldron of activity. It was understood that apart from our homes, insurance policies, and bank accounts, we didn’t have interests separate from the firm’s and we didn’t make investments outside the firm. All for one, one for all."

Source:A Time for Reflection

Appears In Volumes

A Time for Reflection