Credit bonuses to rise up to 30%

Managing directors in credit roles at London investment banks will receive bonuses of up to 900,000 (€1.30m) this year, according to a new survey.

These roles include credit derivatives structuring and trading as well as debt origination, according to the report by Longbridge, the headhunter, which surveyed 25 banks.

A spokeswoman said credit staff overall could expect bonuses to be between 10% and 30% higher than in 2002. "Key revenue generators will be very well paid as usual. However, a big difference this year will be that many foot soldiers will do better than last time." She is expecting very few zero bonuses.

Derivatives structurers would receive some of the highest bonus increases. The survey said vice-presidents would be paid 150,000 to 350,000, while directors would receive 250,000 to 525,000. Bonuses for derivatives traders would be similar.

The spokeswoman said: "There are not enough traders to go round, particularly in correlation trading. If banks want to keep their best people, they will have to pay." Credit staff in non-revenue generating roles would tend to receive lower increases. Associates in risk management would get 20,000 to 35,000, while in quantitative research they would earn 40,000 to 55,000.