Failing to keep up with the Dhow Joneses

Despite a candidate-driven market, it seems local banks in the Middle East have not been pushing the dhow out far enough to attract staff.

A senior local recruiter in Dubai says that as a result they are losing staff to the international banks as compensation becomes more focused on bonuses.

Some of the newer regional players are throwing big numbers to retain or attract talent, "but you have to if you are a start up," he says.

International banks surveyed in the Napier Scott 2007 Salary and Bonus Survey are paying managing directors in wealth management base salaries of 220k, plus 350k bonus packages (including taxable benefits such as schooling and housing). By comparison, employees of local banks can only muster 120k salaries, with bonuses of just 120k.

However, the case may not be that clear cut. Shaun Springer, chief executive of Napier Scott, says it's not easy to make like-for-like comparisons between local and international banks.

"Regional banks tend to offer different kinds of perks to their international counterparts, and between themselves," he says.

Our source confirms the lack of comparability: he says the Gulf's local banks tend to disperse low bonuses across all staff, and are taking a while to follow the lead of international competitors in offering performance-related bonuses that account for the bulk of pay packages.

Dubai salaries and bonuses 2007

Managing director, M&A, tier-one international bank

Salary 150k, bonus 300k

Managing director, private banking, tier-one international bank

Salary 220k, bonus 350k

Managing director, M&A, GCC banks Dubai

Salary 120k, bonus 120k

Managing director, private banking, GCC banks Dubai

Salary 120k, bonus

120k

· Source: Napier Scott