How much am I worth? Head of product control, European global investment bank
A panel of specialist headhunters give their assessment of typical London pay packages: Managing director, product control; salary 125,000-175,000 - bonus up to 500% for top perforrmers.
Few things typify the changes that have taken place in financial services more than the sort of person who works in the middle office.
In the 1970s the typical head of product control was a Steady Eddie type, thorough and honest, though not necessarily quick off the mark - somebody you could describe as a safe pair of hands.
These days one is looking at a very different, more ambitious type of individual (though still honest, of course), particularly if he/she aspires to become an managing director.
'You need to be pretty bright to understand the full range of financial products that are available these days, and be up to date on all the latest innovations,' says Tony Tucker of the Executive Resourcing Group. Most successful product control heads have an accounting or mathematics background, he adds.
To say you need a good head for figures is an understatement - product control heads must liase between front and back office, keeping excellent relations with both. They must manage the profit and loss accounts, be au fait with the trading books and ensure that the data they receive is accurate and valid.
Adept at risk management, they will almost certainly have been closely involved with their institutions' decisions to invest in expensive new technology aimed at refining product control: after the Barings scandal and other fiascos, almost every financial institution has thrown large amounts of money in this direction.
For this reason, many product control managing directors have come through a big name consulting group such as KMPG or McKinsey and have a reputation for understanding even the most unusual and exotic financial products.
If they are global heads - and most would aspire to be, given the pay package attached - they will also be able to cope with pressure well and have a good management style.
'The ideal candidate will have gained experience of several different asset types over his/her career, picking up more man-management experience with each new role or promotion,' says James Mackenzie, director at Alexander Mann's professional services division.
Before becoming global head - something most would achieve in their late 30s or in their 40s - the ideal product control managing director will almost certainly have worked for a range of different banks. They will probably have been global head for a particular asset class or, more likely, regional head across different assets.
Having reached managing director status they will find the rewards are considerable, although basic salaries are broadly similar across most bulge-bracket institutions with the total package heavily weighted towards bonus.
Mackenzie says the basic salary range for global heads is from 150,000 to 250,000 with an overall package, depending obviously on performance, of anywhere between 500,000 and 1.2m. Second tier institutions pay rather less.
Performance, as in so many other areas these days, will probably be associated with keeping costs as low as possible.
'The crucial issue right now is to maintain strong control using the minimum resources,' says Mackenzie, adding this will probably entail improving procedure as well as cutting headcount and pay levels. At the same time staff must be kept motivated.
Figures and commentary supplied by Alexander Mann Global Markets and Executive Resourcing Group
