Ricciardelli

"One of the projects Ricciardelli developed was a shadow portfolio accounting system. Robertson asked him to put this kind of system in place so that if there was a situation where an analyst thought the firm should take a position in a stock of, say, 50,000 shares, and Robertson thought the firm should have 150,000 shares, the proper people would be credited for mak- ing the trading decision."

""Effectively, the analyst would be credited for whatever idea he came up with," said Ricciardelli. "And if he came up with the idea and nothing was ever changed in [the size of the position], he would get credited 100 percent of it. But ifJuHan wanted to double the bet, the analyst would get charged or credited with 50 percent of the bet and the rest would get credited to the house." Using a shadow portfolio system allowed Robertson to keep score of how the analysts were doing in terms of what they were directly or indirecdy contributing to the portfolio's profits. This helped establish an analyst's worth and, more importantly, the analyst's compensation."