U.S. algorithmic traders have seen a massive increase in pay over the past year, driven by talent shortages and increased demand for their expertise - particularly from buyside firms, suggest news reports.
According to this week's Wall Street Letter, pay for U.S. algorithmic executives has risen from $300,000 to between $400,000 and $800,000 over the past year, and is set to continue rising as brokerages and buyside firms pile into the area. For some, bonus guarantees could push total compensation to over $1 million. In response, sell-side firms are raising compensation guarantees.
U.S. recruiters estimate algorithmic trading desks could see staff numbers rise 20 percent by the end of 2006, the article says.