OPTIONS GROUP 2010/2011 Global Financial Market Overview & Compensation Report
Global Financial Market Overview & Compensation Report 2010/2011 October 2010 METHODOLOGY This document is the culmination of twelve months of work done by over a hundred of our global consultants and research professionals to help clients make fiscal 2010 compensation decisions and develop their human resource plans for 2011. Our Options Group Intelligence Unit (OGIU) has captured information about business performance, people moves, recruitment trends and compensation practices using our global database of over 350,000 industry professionals, interviews with senior executives, and media sources. Options Group was able to make thorough assessments of expected compensation by product category, region and bank. Since many firms are in the process of allocating their bonus pool and 2011 budgets, these estimates may be used by hiring managers and unit heads as a general guide for the allocation of their employees compensation. The compensation estimates in this report are based upon salaries issued by first and second tier full service bulge bracket banks. Salaries offered at mid sized banks and specialty firms that are industry leaders are also taken into consideration. Our estimates do not include outliers who represent top tenth and bottom tenth percentile of salary ranges. Unless otherwise noted, compensation estimates are in US dollars. These figures incorporate general market conditions from January 1, 2010 to September 30, 2010. Options Group claims no responsibility for the accuracy of this information in the event market conditions change dramatically from the time this report was issued. This report mines real time data retrieved from candidates, consultants, clients, as well as primary and secondary sources to present objective, forward looking compensation projections by product and geography. In addition, OGIU hired an independent source to gather information at all levels for every product in the global markets business. DISCLAIMER This report contains information from reliable sources and should be used for reference purposes only. All compensation tables include estimated total pay levels for 2010 and include base and bonus. They represent total pay packages of the market leaders in each of these product categories. Any reproduction, sale, or distribution is prohibited. We believe the information contained in this publication is reasonable and taken from primary and secondary sources through September 30, 2010. We do not guarantee its accuracy or completeness, and nothing in this report should be construed to be a representation of such a guarantee. This report is just one data point in the overall analysis of compensation structures. The opinions presented are subject to change without notice. Options Group does not accept any responsibility for liabilities arising from use of this document or its content. 2 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 October 2010 DATA CONTRIBUTORS ABS Alert, Alternative Investment News, Alpha Magazine, Asiamoney, Bloomberg, Bond Week, The Boston Consulting Group, BusinessWeek, Dow Jones Credit Suisse, Dealogic, Derivatives Week, Dow Jones, efinance, Euromoney, Financial News, Financial Times, Fortune, Investment Dealers Digest, New York Times, PE Week, Risk, Securities and Exchange Commission filings, Securities Industry Association, Thomson Reuters, The Wall Street Journal ABOUT OPTIONS GROUP Options Group is a leading global executive search and strategic consulting firm for the financial services industry. Over the past 17 years, the company has successfully carried out placements of mid to seniorlevel personnel in all areas of the financial services industry for a range of global institutions. With over a hundred consultants and market intelligence professionals worldwide, Options Group has a handle on key competencies in the financial field and is at the cutting edge of global hiring and compensation trends in capital markets, derivatives, equities, hedge funds, investment banking and technology. Options Group has a track record of consistently providing quick and comprehensive executive search and market intelligence results to clients. We have placed thousands of professionals across five continents since 2000. We, as a firm, are providing realistic views collected from surveys, interviews with candidates, clients, consultants, various media outlets and human resource managers globally. For additional information, please contact: Jessica Lee 212.982.8405 jlee@optionsgroup.com ABOUT OPTIONS GROUP INTELLIGENCE UNIT (OGIU) Options Group Intelligence Unit is the business information and research arm of Options Group. Through its global network of analysts, consultants, and client relationships, Options Group Intelligence Unit is in the unique position to assist senior executives in making better business decisions by providing timely, reliable and accurate analysis on worldwide financial firms and market trends. Options Group is committed to delivering value added market intelligence and strategic consulting in addition to our executive search services. We believe our clients value firms who have rapid cycle times and can complete searches and market intelligence projects in weeks rather than months. 3 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 October 2010 OCTOBER 2010 2010 TABLE OF CONTENTS Global Markets... 7 Brazil... 21 China... 26 EMEA... 32 Hong Kong... 43 India... 49 Japan... 56 Russia... 58 Singapore... 62 FICC... 67 Commodities... 67 High Yield Credit... 71 Investment Grade Credit... 74 Structured Credit... 77 Securitized Products... 80 Rates... 84 Foreign Exchange... 87 Emerging Market Debt... 91 Municipals... 95 4 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 October 2010 Equities... 100 Convertible Bonds... 100 Equity Cash... 103 Equity Derivatives... 108 Prime Brokerage... 112 Quantitative Research... 117 Risk Management... 120 Information Technology... 123 Investment Banking... 127 Alternative Investments... 133 Asset Management... 133 Electronic Trading... 136 Hedge Funds... 140 Private Equity/Venture Capital... 144 Private Wealth Management... 148 Proprietary Trading... 153 References... 156 5 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 Global Markets 2010 These are estimated 2010 compensation figures based on data and information taken from primary and secondary sources through September 30, 2010. Please refer to page 2 under Methodology for the details on the composition of these estimates. 11 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 Regional Markets Brazil to 80 percent, versus sales and trading, where total compensation is projected to increase 20 to 40 percent. Cash is king in Brazil. Options Group estimates that local banks typically offer candidates bonus composition with no more than 20 percent in equity. This compares to the 30 to 40 percent paid by foreign banks. In addition, a total salary increase weighted towards base salary has also been implemented in the region. In previous years, base salary averaged 30 percent of total compensation, but now stands closer to 40 to 45 percent. Lastly, Brazil is one the few regions experiencing an increase in guarantees. One year guarantees are common and two year guarantees are expected to continue to increase. 25 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 FICC Investment Grade Credit 75 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 FICC Investment Grade Credit 76 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 Alternative Investments Asset Management OUTLOOK Options Group predicts that most asset management firms will be seeking investment professionals. As some firms close or consolidate due to poor performance, successful firms will be able to hire talented individuals without paying significant premiums. On the distribution side, marketers with a proven track record will continue to be well compensated. 134 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 Alternative Investments Asset Management 135 www.optionsgroup.com
REFERENCES Global Financial Market Overview & Compensation Report 2010/2011 OTHER OPTIONS GROUP POST BONUS REVIEW APR RIL 2011 R RELEASE THE SPRING 2011 GLOBAL COMPENSATION REVIEW WILL FEATURE: Comparison of compensation estimates versus actual compensation awards Review of product areas experiencing the highest level of recruitment activity Overviews of the largest global financial firms including structures and recent developments basic compensation Contact your Options Group consultant for details, or: Jessica Lee 212 982 8405 Jlee@optionsgroup.com 156 www.optionsgroup.com
Global Financial Market Overview & Compensation Report 2010/2011 Founded in 1992, Options Group has always prioritized maintaining an intimate relationship with the financial services industry and its key participants. Options Group offers financial services companies a broad array of integrated services. These include Executive Search, Market Intelligence and Strategic Consulting. Options Group, with its global footprint and its growing Emerging Markets presence, has combined its strong historical relationships and its product and geographical knowledge in the financial services industry with technology to create a deep and valuable proprietary database. WWW.OPTIONSGROUP.COM. NEW YORK BOSTON NEWPORT BEACH SÃO PAULO 121 EAST 18 TH STREET NEW YORK, NY 10003 212.982.0900 92 STATE STREET SUITE 700 BOSTON, MA 02109 617.263.0490 660 NEWPORT BEACH CTR DRIVE SUITE 760 NEWPORT BEACH, CA 92660 949.706.6500 RUA DO ROCIO 288 11 TH FLOOR SÃOPAULO SP +55.11.3371.1101 LONDON 3 COPTHALL AVENUE 5 TH FLOOR LONDON, EC2R 7BH +44.207.448.0100 ZÜRICH 106 Bahnhofstrasse, 8001 ZÜRICH, SWITZERLAND +41.43. 443.7490 SINGAPORE 9 RAFFLESPLACE REPUBLIC PLAZA, LEVEL 57 SINGAPORE048618 +65.6823.1550 MUMBAI HONG KONG SHANGHAI TOKYO 135, 13 TH FLOOR, JOLLY MAKERCHAMBERSII MUMBAI, 400021 INDIA +91.22.2282.9303 902 DINA HOUSE 11 DUDDELL STREET CENTRAL HONG KONG +852.2155.1300 NO. 288 NANJING (W) ROAD SUITE 2305 SHANGHAI 200003, P.R. CHINA +86.21.3366.3088 Holland Hills Mori Tower 16F 5 11 2 Toranomon, Minato ku, Tokyo 105 0001 +81.3.5777.4200 157 www.optionsgroup.com
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