Senior Russian bond salesperson, major Russian institution, Moscow: How Much Am I Worth?

As a glance at any business newspaper will confirm, Russia's reputation as an investment destination is hardly what it was just a year ago. President Putin's politically-driven dismemberment of Yukos, once Russia's most dynamic oil company, has potential investors running scared whilst capital flight has reached levels not seen since the Yeltsin era. Not surprisingly, equities have wobbled

Yet continuing GDP growth, fuelled by high oil prices, coupled with the elevation of Russia to investment grade by ratings agencies has led to a surge of interest in Russian bonds. Although by comparison with other markets, the Russian bond market is still nascent, it has grown considerably, a phenomenon most expect to continue. This has made multi-lingual Russian bond salespeople valuable currency - especially if they are happy to stay in their capital city rather than be lured by the delights of an expatriate life somewhere else.

"Russian bankers in general are enjoying a massive increase in total compensation across the board, mainly due to the skills shortage with more Russian bankers now living abroad than in Moscow," says Elvira Muratova, head of Russia and the CIS at Napier Scott, adding that very much the same applies to bond sales people.

So what sort of background would a successful Russian bond salesperson have?

Richard Fraser of RJF Global Search says individuals will be Russian nationals, have a solid experience of domestic and international markets, and strong relationships with financial institutions, funds and insurance companies.

He or she will also have a proven track record in the sale of a wide range of fixed income products: asset backed securities, corporate bonds, structured credit, and government bonds. Multilingual, the individual will be degree educated either in Russia or the US, ideally with some experience of working in Europe.

Fraser says the market is becoming broader and more sophisticated.

"Issuance from non top ten companies and second tier banks has taken off. We are seeing the development of products ranging from straight bonds from the top 50 corporates through to intermediate products like credit linked notes being distributed by companies that don't have enough documentation to list on the stock exchange," he says.

So what salaries can these Russians expect to pull in? There is a big salary difference between those who merely cover the market and those who can generate serious profit from it. Muratova says the individual who can generate real revenue earnings, has a good understanding of complex products, and who has built up a good international contact book can expect a package worth in excess of 500,000.

Fraser suggests a typical basic of between 80,000-100,000 with bonuses of anywhere up to 250%, adding however that salaries can vary enormously depending on performance and the institution concerned. He sees signs of signs of increased activity from banks such as Sberbank, Gazprombank, Rosbank, Alfa Bank and Renaissance Capital but warns consolidation of the Russian bank sector is likely over the next few years, with a smaller hard core of large institutions emerging in place of the hundreds that exist now.

For high earners working for one of the larger Russian banks this is unlikely to be of concern however. With GDP growth expected to continue, and Russian banks risk-averse, companies, institutions and municipalities increasingly see the bond market as the best way to access much needed capital. Barring some unforeseen calamity, the Russian bond market has some good years ahead of it.

Figures and commentary by Napier Scott and RJF Global Search.