High-frequency programmers revolt over pay

[bigbadwolf]

An article in Forbes:

Pity the programmers toiling away at Wall Street's secretive high-frequency trading shops--places like Goldman Sachs ( GS - news - people ), Citadel and Getco. They wrote algorithms that take advantage of fleeting trading opportunities and bring in up to $100,000 a day. In return, they received a fraction of the pay doled out to their bosses.

Now some programmers feel used and are instigating a revolt.

 

[Andy Nguyen]

Good luck revolting at GS. Take a cue from this guy.
Goldman blocks worker from leading financial crisis walking tours | Business | guardian.co.uk

 

[Connor]

I can understand the programmers point of view. There is basically a cap on their compensation while traders can wheel in the dough. But leaving their jobs to start on their own involves more risk. If this becomes a big enough deal, I can see some firms modifying compensation structures to better include programmers.

 

[quantie]

Just go elsewhere if not happy

Revolt won't work. If too many programmers leave to hedge funds or other places, the salaries will automatically go up. That's how the market works.

There was a point when investment bank were grabbing anybody who could write C++ code. Compensation for these people became very high. Then C++ became less important and everybody learned it, so the compensation even went down with bonuses being lower. For new hires salary levels went down. Things change.

Revolt may sound cool. Keep in mind there are unemployed qualified people who can replace you. If you don't like your situation, find something better and then leave.

 

[bigbadwolf]

Revolt won't work. If too many programmers leave to hedge funds or other places, the salaries will automatically go up. ... If you don't like your situation, find something better and then leave.

That's how they're revolting -- by packing their bags and leaving, often setting up shop themselves. And they're taking valuable skill sets with them, hard to replace. The algorithms for high-frequency trading are worth their weight in platinum, in diamonds.

Keep in mind there are unemployed qualified people who can replace you.

Not in high-frequency programming. That's why one programmer who was leaving was offered a $45,000 raise and his own office to stay on.