Energy Trading to REIT? A sign of a RE rebound or just an outlier
So last week one of my peers in the energy industry told me he leaving his firm to go work for a REIT and it got me thinking, is this another sign of rebound in the RE industry? To give u some background, I trade NG and so did my friend. Now, granted there are good and bad years in the energy industry, on average id say its a pretty decent paying industry, so it just made me think "why".
He explained his comp structure and mentioned that he will be getting a bonus based on profit forecasts on the deal/cashflows on deals closed and if he takes his bonus in equity they will give him 1.5 times the amount, as well as annual stock options as a side form of compensation - and the company is public on the NYSE. Is this pretty common pay structure for the industry? What would "all-in" comps range around for a valuation analyst? I am curious because I have always liked the real estate industry and it actually sounds like a fairly decent situation. I tried searching the topic but a lot of the posts are like 2-3 yrs old and im guessing the RE industry now vs then is probably a bit different. Thanks in advance.
maybe he was bored. I left a nice energy seat...
I don't think we're seeing a serious rebound.
You mention comp, and at least in that regard my answer is no, not really all that different from 2-3 years ago.This. Although there are exceptions, my recommendation is do not go to a REIT expecting an awesome pay package and strong growth in this market. I'm no energy expert, but can't energy traders make tens of millions when they're very young? If you like it, that's one thing, but it'll be years before, say, office REITs are on fire like they were in the boom years. I'd be curious what product type the REIT in question is focused on - if it's apartments, then no surprise there.
yes energy traders can potentially make a lot of money very young but the industry is def not the same as it was say 5 yrs ago...its def not a bad place to be which is why it threw me off. oh well maybe u guys are right and he was just bored with it...i could see that w NG below 2 bux and the daily moves are like 1-3 cents lol
Maybe he blew up? Maybe his firm didnt give him enough balance sheet? Maybe he got sick of the $.03 moves. There is lots of reasons to leave.
5 years ago? more like 10-20 years ago.
To say he left A cause of this or that is not going to prove anything. I would just ask him
And no it is not true, you can not make millions very young. Maybe 20 years ago but not in todays market
Quick question for you guys. Do you think that natural gas prices will ever return to there volatility? I remember reading trading articles in 2007 and they used to refer to natural gas trading as the widowmaker.
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