Senior derivatives strategist: How much am I worth?

With derivatives increasingly forming a part of private portfolios and becoming an integral part of wealth management, the demand for personable individuals with a good track record - and good academics - has never been higher.

"The typical candidate will be a quantitative analyst with a PhD, a sciences or econometric background and have knowledge of stochastic calculus, probabilities and statistical analysis packages," says Richard Fraser of RJF Global Search. "They need to have good research skills, an excellent knowledge of the market and some programming skills."

Fraser says strategists will be responsible for derivatives analysis in equities, FX, commodities and fixed income. Successful strategists must also be "people people".

"Good communication skills are absolutely vital as much of the work is client facing; they must be able to put often highly technical and complex facts into straightforward layman's terms," says Jamie Risso-Gill of recruiter Robert Walters.

The reality though is that complex math and good communications skills do not often go together - which means the individual who can offer both can pretty much ask whatever he or she wants.

So just how much is that?

Fraser says a derivatives strategist with a good track record and four years plus experience could be earning a basic anywhere between 80,000-130,000 with an impressive bonus - between 75% and 350%. Risso-Gill is even more upbeat, suggesting a base of between 100,000-150,000 and "an elastic bonus" of as much as 300%-400%.

Mike Stubbs-Egginton of search firm Napier Scott suggests a base of 120,000 with a bonus worth three times that, highly dependent on performance and relying heavily on a strategist's own profit centre.

And that's not all the good news. Fraser describes hiring of derivatives strategists at all levels - from junior through to senior - as very active, with first and second tier institutions in particular keen to build up teams. With many having to poach from other firms, payment of "attractive" guarantees is common.

With such a dynamic recruitment market and telephone digit salaries, maybe the last remaining university-based statisticians should consider a career shift. It isn't every day one gets a chance to become as rich as Croesus.

Figures and commentary by RJF Global Search, Robert Walters and Napier Scott