Macquarie ‘Millionaires Factory’ Put at Risk by Investor Revolt

Macquarie Group Ltd.’s long vaunted money-making machine for top bankers is showing signs of strain.

Known as the “Millionaires’ Factory,” the Australian financial giant has for years awarded more generous pay to its senior management and dealmakers than rivals across Asia. Former commodities head Nick O’Kane famously earned more than JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, before he left last year.

A recent string of lapses in risk management and senior departures are putting that at risk. Macquarie faces potential penalties amounting to hundreds of millions of dollars after drawing the ire of regulators from the ...