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The international credit crisis has played a crucial role in an average 40% drop in salary and bonus packages paid to City market traders in certain markets, according to the latest Napier Scott annual survey.
But Wall Street’s gloom is considerably more severe than that in the Square Mile as packages there have been slashed by an average of 60% in those same areas.
Shaun Springer, CEO of Napier Scott, said: “The biggest falls in the UK occurred in the debt and credit markets. Tier 1 managing directors have received packages of £685,000, which are down £290,000 on the previous year.
“However, despite these significant reductions there were still packages paid in the UK which were in excess of £1 million, particularly in the area of Tier 1 equity derivative sales and still in exotic credit trading despite the losses.”
The survey - now in its seventh years - was conducted among more than 3,000 front office trades covering international markets.
Springer added that Asia now commanded the highest average packages in the world with a Tier 1 managing director operating in exotic credit trading receiving £1,480,000 and his counterpart in credit structuring receiving £1,410,000.
“This was due to intense competition for talent and the Asia region being relatively less battered by the credit crisis,” he said.
Globally, the Middle East recorded the highest percentage rise in remuneration for the second successive year with packages an average of 20 percent, albeit from a lower international base.
Polarisation between bonuses awarded by Tier 1 and Tier 2 banks was further exacerbated. Tier 2 suffered the biggest cut across its markets: particularly hard hit was fixed income.
The most profitable area in Europe was recorded for those covering clients in Germany and Austria.
FX, commodities, and equities and funds derivatives continued to be the products to generate the most profits.
Bonuses in equity derivatives increased in some cases by up to 30 percent overall. This product sector enjoyed the highest average percentage increase at 14%.
Click here to download the survey.
