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> is worth it if that person worth $60M can eek out even a few extra basis points in returns

[...] and no one else could/would have performed better for less than $60M.




That's not the point. The way compensation works, usually, is that you say, "if you do well, we'll pay you this much", where "this much" depends on how well the person does. You can't change your mind post-fact, "well, anyone could have done this well, so we won't actually pay you this much".


I don't doubt that they were contractually bound to pay the 60M$.

The parent comment sort of implied that the fund couldn't possibly have overpaid, because 60M$ is such a small fraction of profits. All I'm saying is that they might have overpaid, at the time of signing the contract, if another equally skilled manager would have taken the job for a smaller compensation package.


The funny thing is that in this case they actually somehow managed to pay him half of what he was entitled to according to their agreement.




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