Tuesday, April 08, 2003

the more things change... [NYT]
Meirav Chovav, a biotechnology stock analyst at Credit Suisse First Boston, agreed last April to join UBS Warburg, whose health care banking group is led by Benjamin Lorello. Her compensation: a guaranteed $10 million over three years, say bankers with a knowledge of her contract.

Her contract came not only in the midst of a bear market, but just two months after Eliot Spitzer, the New York attorney general, had opened an investigation into research and banking conflicts on Wall Street....

But even if she is not giving all favorable reviews to companies under her purview, her rich contract has caused a number of bankers to suggest that the only way UBS Warburg could justify paying her over $3 million a year is if she brings in a substantial amount of investment banking business.

How's your HealthSouth stock?

Update: adopting skimble's [perhaps slightly reductivist] new math, I see that Ms. Chovav is only worth 222 U.S. Army Privates -- a discrepancy easily explained by her M.S. in molecular biology.

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