A salary survey conducted by Michael Page City predicts derivatives staffers' salaries and bonuses will be down by as much as 20% compared with last year. It also shows two-tiered remuneration, with structured derivatives pros receiving higher compensation than those working in plain vanilla groups, which is normal when client flows dry up in a bear market. Additionally, all equity derivatives professionals will fall within the lower tier.
Simon Barker, fixed income recruiter at Michael Page City in London, said that although most structured products professionals will get a pay cut, those in the hottest areas can still command a premium. Staffers with expertise in synthetic asset-backed securities could receive a 50% increase from 2001 levels, he predicted. Structurers of synthetic ABS deals are in high demand as investors look to invest in lower risk products, which would include those backed by a revenue stream.
A competing recruiter agreed that credit derivatives professionals could beat the trend, but he believes plain vanilla credit traders could also get higher payouts.
