How much am I worth? European equities analyst, leading international institution

As European equity markets steady and investors recover their nerve, equity analysts might reasonably expect an improvement in their fortunes. After all, the downturn has been especially cruel to a profession that was revered in the 1990s.

Simon Vaughan-Edwards of Alexander Mann Global Markets said: "There has been a considerable cutting of analyst numbers. Key sector teams have shrunk by up to 50% and some sectors have been removed from coverage lists altogether as a lack of liquidity and volume makes the sector uncommercial to cover."

Although headhunters see some recovery in demand by top and second tier banks for high quality analysts, the uncertainty into just how banks should present equity research has put a cloud over analysts' future.

Paul Tapp of Longbridge International said: "There is a major question mark still over the independence of research." He said investment houses are trying to create independent research departments, while at the same time there has been growth in the number of independent research firms selling analysis to investment banks. It is unclear how far each model will thrive.

So what has all this meant for wage packets? Vaughan-Edwards said base salaries for most analysts have remained stagnant at around 80,000 to 100,000 while bonuses can be best described as quite unpredictable.

"Bonuses can take a strong analyst to a total package of around 250,000 although there are still considerable variants within each house: it's rare, but some market 'stars' receive 600,000 whilst other analysts can get zero or minimal bonuses," he said.

Tapp said senior analysis staff are better off. He said a head of research, or a senior research analyst, will typically earn a salary of 200,000; a mid-level analyst will earn around 120,000; and a junior analyst will earn 65,000; bonuses range from anywhere between 0% to 300% for senior figures and from 0% to 50% for juniors.

Tapp believes bonuses in 2004 will be higher than those for 2003. But hiring will remain subdued.

"Banks and job seekers remain relatively pessimistic about the outlook for 2004 with only a small percentage of employers envisaging an increase in staff levels: hiring will be selective, especially in the first half of the year," he said.

Figures and commentary by Longbridge International and Alexander Mann Global Markets