How much am I worth? Vice president, DCM, European investment bank

A panel of specialist headhunters give their assessment of typical pay packages:Vice president, DCM, European Bank: Salary: 85,000, bonus at least 100%, much more in good years

Innovation has always been one of the City's most characteristic hallmarks and nowhere more so than in the evolution of the debt capital markets, or DCM.

Who would have thought, say 30 years ago, that there would be a market in buying debt from struggling companies - or even not so struggling companies - and selling it on to third parties at a sometimes considerable profit?

Even better, the development of the DCM seems to have done everybody a favour: the original company, which is able to restructure its debt profile and raise much needed capital, the original debtor, which can reduce its exposure to the company and thus reassure nervous shareholders, those companies and banks that buy the debt at a healthy discount who have the possibility of turning a profit and, of course, the intermediary who originates the deal, who can earn considerable profits from fees.

Although he acknowledges DCM is a relatively new sector, Ted Tracey of TMP Worldwide says it has got into its stride over the last few years, notably in 2000-2001 when those on a basic of say 75,000 were getting bonuses of up to 350,000. Last year was also active, with Italy very much flavour of the moment.

Telecom Italia was one of a number of Italian companies eager to raise capital without selling equity and deciding to turn to the DCM for the purpose. This year emerging markets are especially active, and Tracey believes this activity will be sustained with companies from eastern Europe and the Middle East in particular eager to turn to the DCM to raise cash.

Many banks meanwhile are eager to reduce their exposure to the two regions (CSFB is just one of several which has considerably reduced its exposure to Russia through DCM Barclays, ABN Amro and others have also been very active in these regions).

The industry has become more sophisticated, with credit derivatives used increasingly, though market conditions are pretty tough - like just about everything else in the City these days.

&quotThere is a lot of marketing and pitching for deals, but fewer mandates to go round. Thus the level of competition has intensified," says Peter Win of Alexander Mann Global Markets.

Tracey agrees, adding that recruitment is mainly at the VP/director level at present and turnaround time for completing a hire is pretty slow, up to three months against the six weeks that was common last year.

&quotDue to tight head count, clients appreciate bankers who have more than one European language, thus offering cross border coverage," says Tracey, who admits that in the current market banks are employing DCM staff who can effectively do the job of two or three people.

So what qualities are needed to succeed in the current tough and heady world of DCM? Headhunters say a range of key core skills is essential including excellent analytical ability and strong capital markets knowledge, along with superb relationship skills and an impressive academic background - plus fluency in at least two European languages.

However one recruiter admits that the really successful DCM originator - usually in their mid to late 30s - is a &quotweird kind of fish" in that they must be adept at pitching and originating new business and then equally confident at executing it and doing the advisory side.

&quotFor the right person the sky can be the limit," he says, adding that bonuses of 2m have not been unknown.

Figures and commentary provided by TMP Worldwide, Alexander Mann Global Markets and Longbridge Associates