M&A bankers at Macquarie will soon learn what their bonuses are for the past financial year. Recruiters say the news should be good. And if it isn't, they should have no problem finding alternative roles elsewhere.
"Profits at Macquarie are up, so bonuses are also likely to be up," says one search consultant. "Most people are fairly confident."
Earlier this month, Macquarie reported a 30% year on year increase in profitability in its investment banking group.
But bankers at Macquarie whose bonus payouts are slimmer than expected could find plenty of other opportunities in the market. "Good people will be snapped up immediately," says one M&A recruiter. "There's particularly huge demand for M&A professionals with mining and resources experience."
Announced M&A activity in Australia rose 14% in the first quarter of 2006 vs the first quarter of 2005 according to data provider Thomson Financial.
Michael Markiewicz, managing director of Carmichael Fisher, says the boom in M&A extends to M&A lawyers. While a vice president in M&A working in a mining team could expect to earn a total package of up to A$300,000 after five years, he says lawyers can be comparatively better off.
He cites one lawyer with just two years' experience who recently went from an A$75,000 package with a law firm in Melbourne to A$250,000 with a Sydney investment bank.