The world's richest model has reportedly reacted in her own way to the sliding value of the US dollar - by refusing to be paid in the currency. Gisele Bündchen is said to be keen to avoid the US currency because of uncertainty over its strength. The Brazilian, thought to have earned about $30m in the year to June, prefers to be paid in euros, her sister and manager told the Bloomberg news agency.
CNBC notes, however, the BBC may have gotten the story wrong:
CNBC Squawk Box producer Stephanie Landsman spoke by telephone with Anne Nelson, Bundchen's manager. Nelson tells us reports that Gisele wants to be paid in euros are "false." Nelson's take: "Some idiot in Brazil reported something just to make news." Nelson points out that Gisele lives in New York City, and thus needs U.S. dollars for her big-city lifestyle. Of course, anyone who disagrees with Warren Buffett's investment wisdom does so at their own risk. But we have to think Gisele gets enough U.S. dollars that she can absorb any potential weakness against the Euro and avoid giving the unfortunate impression that she is negative about the United States in any way.
Even if Ms. Bundchen was as bearish against the dollar as Mr. Buffet, she could let Proctor & Gamble pay her in dollars, consume what she wants in NYC, and for any funds left over – convert those into Euros in a very efficient capital market. Sure – there’d be some transaction costs but with an annual salary of $30 million per year, she’s already playing in the big leagues where transactions costs represent a very small fraction of the volume traded.