Just to clarify: some people at Cantor Fitzgerald are paid their bonuses MONTHLY
If you're worried about the likely cash component of bonuses in future, there may be a solution: Cantor Fitzgerald.
As a follow-up to our article earlier this week, the US broker has been in touch to clarify its hiring plans and payment formulae.
The answer? Yes, it is doing some very big hiring. And yes, it does pay very favourably.
"We presently have more than 25 [fixed income] people in London," says John Baldo , senior managing director and head of fixed income sales. "We should easily hire 25 more and I would say it will grow to be a team of 125ish within the next 12 months."
Baldo says these new hires will be engaged in: structured credit/products (ABS), high yield/distressed/bank loan, investment grade, rates, emerging markets, and fixed income research. Spain and Benelux are areas of particular focus.
About pay...
In the age of the flow monster, why would anyone want to join a mid-market Cantor-sized operation? As we noted previously, some of its more recent hires appear to have been out of the market for some time.
Baldo's rebuttal: "We are not up against those guys [the flow monsters]. We see ourselves as the best of the second tier." He also points out that some of those hired chose to voluntarily spend some time out of the market in 2008-2009, and have excellent relationships.
Most interesting, however, is the draw exerted by Cantor's pay policies.
"Others pay discretionary bonus to sales, we pay monthly commission," says Baldo. "We can pay whenever we want as we are not owned by the government. Traders are paid off of their p/l, sales are paid monthly commissions," he clarifies.
By encouraging extreme diligence, this apparently creates competitive advantage.
"Because ouf our variable compensation model, our people work really hard," Baldo says. "If you don't' come in every day and make it happen, you don't get paid. We differentiate ourselves with very, very hard work."
Does this mean people at Cantor are paid commission only, or that salaries haven't been increased in line with banks? At this point, the PR intervenes. "We have no comment. We don't talk about pay," she says. Guess that's a no, then.
