As bitcoin continues to outperform traditional assets such as cash stocks and bonds, there is reportedly growing demand from Wall Street’s top talent to receive payouts in cryptocurrency — specifically bitcoin.
A New Type of Compensation for Today’s Talent
2017 has been a fantastic year for cryptocurrencies, tokens and digital assets. With bitcoin posting year to date gains of over 1,500 percent and the overall digital asset market-cap slowly creeping towards global market legitimacy, many are finally starting to accept a future where cryptocurrencies are prominent.
And when it comes to that future, banks and brokerages are desperately searching the market to find and retain top-tier talent who can not only wrap their heads around the ever-evolving cryptocurrency landscape, but ones that understand “cryptoeconomics”.
It turns out that next step in remaining competitive may be sweetening the year-end bonus pot by adding bitcoin to go along with cash and deferred stock that is typically awarded to employees.
According to Bob Graham, a digital currency expert at accounting and advisory firm Friedman this bonus could be a differentiator.
“The bitcoin bonus could be one of the methodologies in recruiting better talent into your organization,” he said.
As inquiries from hedge funds and other asset managers and banks continue to try and understand the market, compensation that aligns with financial goals of its cryptocurrency savvy employees will be a major factor going forward.
Show Me the Money
With the Chicago Board Option Exchange (CBOE) and the CME Group launching their bitcoin futures contracts, as well as NASDAQ planning their own later in 2018, there is a tremendous amount of interest on Wall Street and it only makes sense for bankers to request to receive compensation in assets they believe in long term.
Aaron Kaplan, attorney at Gusrae Kaplan Nussbaum isn’t surprised that there is increased chatter about bitcoin bonuses on Wall Street.
“The idea of bitcoin bonuses isn’t far-fetched… Partners in some venture funds, as part of their packages, are already accepting “virtual tokens” tied to initial coin offerings now that the rising value of cryptocurrencies has been demonstrated”.
It will be interesting to see how Wall Street and older players in the financial capital of the world respond to the growing demand for digital currency bonuses. Will they respond like Jamie Dimon and call all bitcoin owners/traders stupid? Or will they accept that cryptocurrencies are more than just a fad and that providing compensation for tokens is required to recruit the top level crypto talent across the world?
Would you be more interested in working at a company if they provided some of their compensation in cryptocurrency? Why or why not?
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