Syndicate earns big bonuses
Their salary plus bonus averaged 730,000 (€1m), ahead of their counterparts in debt capital markets origination. Pay for both roles was higher in the US and lower in Asia.
Napier Scott said bonuses in debt capital markets were often as high as last year because many banks had reduced headcount, particularly in less structured work. Large firms tended to make job cuts in corporate coverage, while small ones made reductions where business flows were weak.
"The very best professionals with strong debt syndicate and primary trading skills are still in demand," the survey said.
Vice-presidents in syndication earned total packages of 260,000 in London in top-tier banks, twice the amount in third-tier companies. Pay was also higher in the US and lower in Asia.
James Richardson, a consultant at Napier Scott, said the job market in Europe was patchy: "Some banks are hiring, such as Royal Bank of Scotland. Others are cutting back."
Debt capital markets business flows have been driven in recent months by issuance from financial institutions, rather than corporates, Napier Scott said. Corporates were instead focusing on saving money through structural changes and lay-offs.
Napier Scott said it surveyed more than 300 staff globally. It predicted bonuses this year would be stable. "There is optimism among bankers that with most cutting already accomplished, bonus levels will be slightly up. Our guess is such optimism will be disappointed."
