Salary survey: Average performers head for high bonuses

Credit risk specialists in London can expect bonuses 10%-20% higher this year than in 2002, according to a study by Sheffield Haworth, the recruitment consultancy. Solid performers at vice president and associate level are expected to receive some of the biggest increases.

Associates in credit risk can expect a salary of 35,000 to 55,000, plus a bonus of up to 40%, said Adrian Marples, a senior consultant at Sheffield Haworth.

Vice presidents can command a salary of 50,000 to 90,000, plus a bonus of up to 60%, while the best paid directors are on a salary of 120,000 plus an 80% bonus.

Marples said: 'Last year there was so little to go round (in bonuses) that only the stars were well paid. The emphasis this year will be on rewarding the solid performers who have been loyal but underpaid for the past two years."

The highest paid credit risk specialists work in growth areas such as hedge funds and credit methodology, which involves the application of market risk techniques to credit risk analysis.

Marples said experienced vice presidents moving into new positions in these areas can command basic salaries of 80,000 or more.

In a report on credit risk hiring, Sheffield Haworth said growth in the number of hedge funds has encouraged banks to hire hedge fund specialists for their own credit risk divisions.

It estimates there are between 30 and 35 such hedge fund specialists employed in London.

Marples said credit risk hiring next year will focus on hedge funds, securitisation and leveraged finance, as well as credit methodology.

Sheffield Haworth said its findings were based on responses from more than 25 banks.