Fund derivatives pay rising: Salary survey

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Salary and bonus levels for derivatives professionals working with fund linked derivatives and hedge fund structured products rose between 7.5% and 10% last year, according to a new salary survey.

Jonathan Astbury, director of the financial services division at the Sandton Group, which conducted the survey, says rising pay reflects strong demand for staff, plus high margins on offer in the sector. "The drivers are high margins and fees, and a relatively evolutionary market in terms of products innovation," he says.

The survey of 47 derivatives professionals in the London, Paris and New York markets, found managing directors trading fund linked derivatives were the most handsomely rewarded, with bonuses of up to 1.1m for 2005, plus salaries of up to 140,000.

Other pay brackets were as follows:

  • MD, structuring: base 120,00 - 140,000; bonus 275,000 - 1,050,000
  • MD, sales: base 110,000 - 130,000; bonus 150,000 - 850,000
  • VP, structuring: base 70,000 - 100,000; bonus 35,000 - 350,000
  • VP, trading: base 80,000 - 100,000; bonus 45,000 - 450,000
  • VP, sales: base 60,000-90,000; bonus 40,000-425,000
  • Associate, structuring: base 50,000-55,000; bonus 25,000-50,000
  • Associate, trading: base 40,000-60,000; bonus 25,000-60,000
  • Associate, sales: base 40,000-55,000; bonus 25,000-60,000
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