Happy New Year on securitisation desks

After bonuses, total pay for managing directors working in securitisation could reach nearly 1 million (€1.42m) for 2003 according to a pay survey by Longbridge, the recruitment company.

In a survey of 25 banks, Longbridge found managing directors working in securitisation structuring, origination and sales could expect bonuses 20% higher than last year, at between 400,000 and 850,000. Salaries for managing directors in securitisation were between 100,000 and 140,000.

The survey said directors in securitisation could expect salaries of between 90,000 and 120,000, plus bonuses of between 150,000 and 250,000. Vice presidents could expect basic salaries of between 70,000 and 85,000, plus bonuses of between 75,000 and 150,000.

Clare Harris, head of fixed income recruitment at Longbridge, said hiring had increased ed across all areas of the securitisation market in 2003, but that some areas were stronger than others. 'Demand has been greatest for people working in mortgage backed securitisation and commercial mortgage backed securitisation.'

She forecast further hiring for sales roles after bonuses have been paid next year.

In a separate survey, Longbridge found bonuses for front office risk managers were likely to be up by a lower 10%-15%. It forecast total packages for managing directors in risk management could reach up to 290,000. Directors in risk management could receive a maximum total of 200,000 and associates could receive total pay of up to 145,000.

Katie Penrose, a consultant in risk management at Longbridge, said the lower bonus increases would not come as a surprise to those in the industry: 'Risk management has not been a particularly busy area. Risk managers are seen as a cost instead of revenue generators.'