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He is to receive as much as 50% of client profits, but won't have any supervisory role, according to Bloomberg.
"We want to have a long-term relationship with the client," says Clive Boothman, head of Schroders' private banking division one that can last decades if the client profits from it.
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X.L., a Bermuda-based insurer, has probably gone furthest by offering to insure clients' profits and net worth, which in effect amounts to insuring their overall risk portfolio.
Instead of the usual 2 and 20 fee structure, SAC reportedly charges a 3 percent management fee and as much as 50 percent of its clients' profits".
They usually charge an annual fee of 1-2% of assets, plus 20% of profits (but if they lose money in one year, they cannot charge clients' profits in a later year until the losses have been recouped).
This appeals to hedge funds, which tend to be short term and take at least a twenty-per-cent commission on clients' profits; Icahn, who said that his fund had paid an average price of seventeen dollars and twenty cents per share — and controlled at least thirteen million shares — stood to gain perhaps three dollars on each share he sold, plus his own fee, of twenty-five per cent.
But their advice to the not-yet-formed Bush campaign certainly puts them in a position to increase their influence -- as Washington door openers or even future Cabinet officials -- and their clients' profits.
In this world, organizations are faced with new and more complex ethical issues in their pursuit to serve clients, gain profits, motivate employees, collaborate with partners and act responsibly towards society and the environment.
The law firms are run by lawyers, and while there may be sharing of costs and cross-referral of clients, profit-sharing is rarely allowed.
Among them was an email sent by a senior director at the bank alleging that one of its clients profited from the distribution of images of child sexual abuse.
"Too many law schools teach that a lawyer's obligation ends at maximizing the client's profits," Mr. Link said.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com