How much am I worth? Senior salesman, UK equities, international bank

A panel of specialist headhunters give their assessment of typical London pay packages: Senior salesman, UK equities, international bank: salary between 80,000 and 120,000 (exceptionally up to 150,000); total package 250,000 - 450,000

Those wondering whether property prices are due for a tumble should take a

look at Surrey, classic commuter-belt territory.

During the long bull market of the 1990s, top-end prices rose dramatically as

some of the most stereotypical house-buyers - senior UK equity salesmen - poured their

impressive annual bonuses into bricks and mortar.

Judging what's happened to equity markets this year, on top of a difficult

year last year and an equally tough one predicted for 2003, a substantial downward

trend in Surrey mansions should be imminent.

Large numbers of salesmen are out of work; according to Shaun Springer

of Napier Scott, equity salesmen have always been more vulnerable than most to a hire-and-fire mentality at banks. This year is particularly bleak and next year is looking little

better.

Many banks have cut equities staff worldwide in recent months. They include JP

Morgan, which said in October it needed to align its equities business 'with

near-term revenue outlook'.

"Opportunities do remain but they are very specific and directed at 'names','

with graduate recruitment falling back to what must be historic lows," says

Springer, suggesting that until markets recover, the equity salesman's traditional

career path of progressing through the ranks will be taken by very few.

So what has this meant for pay packets?

According to Simon Vaughan-Edwards, deputy managing director at Alexander Mann

Global Markets, the best way to describe current bonuses for senior UK equity

salesmen is "a complete lottery", with commission levels varying from house

to house.

Good salesmen in a top-tier institution - generating up to 8

million - can still expect a total package of 450,000 while those in

second-tier organizations are looking at around 320,000, though this will

be very much tied to experience.

Springer agrees, noting that some of the very top names can still expect to

break the 1 million mark. But he warns that for many people "prospects this year are best illustrated if one were to reduce the basic by 15% and the bonus by 100%."

The most difficult problem for UK equity salesmen in the current climate is

that is very difficult to add value: fund managers are particularly wary of

salesmen who merely regurgitate what appears in that day's Financial Times

or what is discussed at the morning meeting.

Those who do best in the current market have their own mind and are not

afraid to give opinions or judgments that buck the consensus; listening to the

concerns of fund managers also guarantees a more favorable response.

"The key drivers in determining a salesman's worth is his client base and

the depth of his relationships," says Vaughan-Edwards, who believes the

strongly research-driven salesman with a top tier account base is worth the

most in this market.

So how many senior equity salesmen answer to this description? In battle,

the toughest and best fighters are deemed to be those left standing once the

turmoil is over.

In this market, the best guarantee of quality - and thus those likely to get the biggest packages - are those with jobs when the dust of the bear market and mass redundancies settles.

"Those left in the market after this year's and next year's sackings will be

worth their weight in gold when the market does eventually turn for them,"

says Springer.

Indeed, they might even be able to start looking at property in Surrey

again.

Commentary and figures by Napier Scott and Alexander Mann Global Markets.