Salary survey: Debt origination pay to rise

Many senior debt origination specialists can look forward to higher bonuses this year than a year ago, according to a survey by the headhunter Longbridge.

It expected managing directors to receive bonuses in the range of 110% to 780% of salary, up from 100% to 700% last time.

Their salaries ranged from 100,000 (€153,000) a year to 150,000, which would give the best paid ones annual compensation of 1.3m.

Directors were also likely to do well, with bonuses reaching 350% at the upper end of the scale, up from 315% last time. The survey of pay in London was compiled towards the end of last year after discussions with banks.

At more junior levels pay was expected to be flat. Associates were likely to receive no more than 140% of salary, the same as last year.

A Longbridge spokesman said 2002 began well for debt origination but conditions worsened over the year. He said experts in German debt origination however remained in particular demand.

"Key professionals in debt origination will continue to be well paid and they will try to squeeze out a slight increase in their remuneration," the spokesman said. "Some middle of the road and lower quality guys are going to see big cuts in their pay."

Senior credit derivatives specialists could expect lower bonuses on average than a year ago, according to Longbridge. Managing directors would receive bonuses of between 100% and 950% of salary, down from 200% to 1,050%. Bonuses for associates would be flat, at 50% to 575%.

Longbridge said that across the board in credit derivatives, reductions in bonus of more than 20% would be rare and confined to junior positions.