Salary survey: Credit pay best in German roles
Managing directors in credit and structured product sales and marketing can earn more working with German and Italian clients than with clients in the UK, a pay survey shows.
London-based managing directors in first tier banks selling credit and structured products to German clients earned an average base salary of 120,000 (€180,000) in 2003 plus a 1m (€1.48m) bonus, the survey by the recruitment company Napier Scott found.
This compared to an average salary of 120,000 and bonus of 750,000 for managing directors with clients in the UK and Scandinavia.
Napier Scott, which spoke to over 900 London-based sales people in fixed income, credit and structured products roles, found managing directors with Italian clients earned similar base salaries to their UK-focused counterparts, but slightly higher bonuses of 800,000.
The pay gap was equally visible for lower ranks. Second year analysts in credit and structured product sales at first tier banks with clients in London and Scandinavia earned an average base salary of 80,000 plus a 175,000 bonus in 2003. This compared to a base salary of 80,000 and bonuses of 200,000 and 250,000 for analysts working with clients in Italy and German respectively.
Simon Karmal, a consultant at Napier Scott, said: 'The German economy is the biggest in Europe. It is a very sought after area and there are lots of buyers. Italian products are also in demand.'
But the financial advantages of working with German clients may be waning. The survey found total pay for people in credit sales and structuring for all countries rose an average of 17% in the past year. This compared to a 14% increase for people with German clients.
Karmal said the lower rise reflected overcrowding in the German market, with many banks being mediocre performers.
He said first tier houses typically pay 7% of an individual's profit as total compensation, while second tier houses pay 11%. Third tier houses pay as much as 25%, although 16% is more common.
The Netherlands is likely to be a focus of hiring for credit and structured product sales positions in 2004, with many banks feeling they need a dedicated Dutch sales force, according to Karmal.
