Mercuria has engaged a former star trader from Australian major bank Macquarie. This could be expensive for the Geneva-based energy and commodity trading house.
Nick O’Kane (image below) spent years building up the commodity division of Australia’s Macquarie Bank and has turned it into big business. Last year, the star trader is said to have earned more than his boss, and more than the bosses at the biggest Wall Street banks.
And yet, O’Kane is switching to Swiss trading house Mercuria, as reported by British newspaper «Financial Times» (paid article), referring to sources in the know.
Based in Dubai
A preliminary agreement stipulates that the fifty-year-old Australian is to run and expand Mercuria’s gas and energy business in Asia from Dubai. The appointment has yet to be finalized, the report continues.
Mercuria and O’Kane both declined to comment to the newspaper.
(Image: Macquarie)
The Lion’s Share of Profits
O’Kane announced his departure from Macquarie in mid-February. In the last year, his pay was equivalent to around 39 million dollars, following 22 million dollars in 2022. The commodity business he managed accounted for around 60 percent of the Australian bank’s overall profits.
This meant that his pay was around 75 percent more than that of Macquarie Chief Executive Shemara Wikramanayake. His pay also exceeded that of J.P. Morgan CEO Jamie Dimon and Goldman Sachs CEO David Solomon. They made 36 million and 31 million dollars respectively.
Lucrative Volatility
In the future, commodity traders are anticipating a vast increase in demand in gas and electricity markets. In view of climate change and from geopolitical considerations, many countries are trying to reduce their reliance on oil and coal.
Competitors such as fellow Swiss-based commodity firms Trafigura, Vitol and Gunvor have also been expanding their business in gas and power, as they expect greater volatility in these markets.
