How much am I worth? Fixed Income, sales and distribution, large bank

A panel of specialist headhunters give their assessment of typical London pay packages:

Fixed Income, sales and distribution, large financial institution: salary 100,000; bonus - 100-200%

The popular image of the stressed investment bank employee - trapped in a pressure-cooker environment where fast product turnover often takes precedence over the quality of a deal - can be applied to a lot of positions; but none more so than fixed income sales and distribution.

According to Dominic Kennedy, head of fixed income at Napier Scott, the stereotypical employee in such postions at large institutions will have a degree and a solid career path through the front office ranks that will have provided a strong sales background from one product discipline or another.

'They'll be a straight, unemotional bunch of people accustomed to eating what they kill. In other words their bonuses will be largely dependant on what they've sold,' he says, adding that in a dry market this often means they will have to execute deals they would rather not have bothered with.

Recent indications of fixed income strength are mixed, with Goldman Sachs reporting a rise in revenues for the sector in its third quarter of 2002, but Lehman Brothers recording a fall.

Headhunters say the prospects for good sales people remain positive, especially for those with derivative/structured product skills as well as familiarity with more conventional vanilla products.

'A good sales person can still call his/her tune,' says Kennedy, noting that this remains one of the few arenas where packages have not been substantially cut back in the still ongoing round of banking job cuts.

Indeed certain fixed income folk are amongst the highest paid people in the City: Kennedy cites a range between 350,000 and 750,00 for top dogs, depending very much however on area of specialisation (the more derivative/ structured product, the better) and geographic focus.

Typically, pay in London is double that in Italy and some 50% more than in Germany, though jobs are much less secure.

Richard Fisher, principal fixed income consultant at Alexander Mann Global Markets, says a base salary of between 80,000 and 120,000 is common.

'Bonuses can run into many multiples of the individual salaries, though what is paid varies greatly from institution to institution and is affected by many factors,' he says.

German and Italian expertise is currently likely to fetch a particular premium but specialists in smaller but still lucrative countries - such as Scandinavia - are also doing well.

'Italian salespeople in London are among the most expensive salespeople in the market since they generate larger income: the spread is larger, the market is younger and their is still a comparatively strong client appetite,' notes Kennedy.

Indeed, headhunters point out that the fixed income sales and distribution sector has probably been one of the most active, in terms of talent acquisition, over the last year in both the UK and Europe; those with a solid background in terms of revenue generation and with a good understanding of the more esoteric products can expect to be in demand.

Fisher believes hiring in London in particular will stay firm into 2003, with increased demand for structured salespeople and for those with a strong corporate focus in Germany, Italy and Spain.

'Demand will be fuelled by a number of factors but primarily an expected continuance of weak equity markets, lack of IPO and M&A activity and an expected increase in retail demand for fixed income related products,' says Fisher.

Contributors include Alexander Mann Global Markets and Napier Scott