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“Close to the money”

“Close to the money”

Let's explore why you make more money when you are closer to the money.

Personal anecdote

Time for a quick anecdote to help you understand how real this is outside of tech.

When I was in investment banking, we not only directly acknowledged the profit center/cost center divide, we formalized it in department group names:

  • Front office
  • Middle office
  • Back office

Front office

“Sales and Trading” and Corporate Finance dealt directly with clients, closed deals, and booked revenues; hence they were the front office.

Middle office

Risk and ...