FIFX Equities: End of year report and Salary Survey 2017

INDUSTRY INSIGHT
FIFX & EQUITIES:
END OFYEAR REPORT
& SALARY SURVEY 2017

www.selbyjennings.com | enquiries@selbyjennings.com Industry Insight | Enabling Exceptional Careers
2016 was a particularly turbulent year for the
financial markets. Beginning with a freefall in
Chinese Equities which sent the investment world
into panic mode, June brought the unexpected
vote for Brexit and the year has ended with the
election of Donald Trump as President of the
United States. Accordingly, reflecting the world
in which they operate, the financial markets have
been decisively difficult to read, albeit immensely
profitable for some.
Unsurprisingly, the financial recruitment markets
have mirrored the erratic behaviour seen in the
markets they service – perhaps exacerbated by the
impeding regulatory change in the banking sector,
which, it seems, no one is yet in a position to fully
understand.
2016 saw a notable spike in candidates being hired
and made redundant in the same year, as well as
hiring processes dematerialising shortly before
their conclusion – often many months after they
had begun.
‘Restructuring’ was the phrase of the year; with
many banks in a constant state of change, many
employees growing frustrated at the uncertainty
they face and their continued inability to perform
their functions as they would like.
What can we expect in 2017?
As we enter the New Year, there is a notable
sense of optimism from people across the sell-side;
exemplified by the change seen in Broking firms
across the city and the proactivity of Heads in
Investment Banks.
Many Broking Firms were hiring consistently over
the course of 2016, employing an increasing
number of the extremely talented people who
have been made redundant from Investment Banks.
Broking hires tend to be opportunistic, however;
rarely will a Broker launch a search for candidates
with a specific skill set.There was a deviation from
this trend this December – particularly in Credit
and Equities – whereby a large number of Broking
Firms have been reaching out and providing
detailed mandates in accordance with their
respective strategies for the New Year. Similarly,
with Investment Banks, a large number of Team
Heads have called and asked for us to launch
searches in anticipation of the headcount they
seem sure will arrive in early January.After years of
detraction and prolonged uncertainty, it seems the
sentiment across the markets is changing and the
Financial Institutions are growing increasingly more
certain and/or positive in their approach.
INTRODUCTION

Industry Insight | Enabling Exceptional Careers
Capital Optimisation
In view of the strict regulatory changes pertaining
to how banks hold and apply capital, there has
been an increasingly pressing need from banks to
ensure that capital is used optimally. In accordance
with this need, a greater emphasis has been placed
on attracting candidates with regulatory expertise,
especially in areas which are deemed to be suffering
the most from these changes.
Diversity
“20-30% of the candidates
introduced in a process are female”
It has long been a priority in London to improve
upon the relative lack of diversity seen in the
banking sector.
The way in which Investment Banks are approaching
this drive appears to be changing,however,with the
process becoming increasingly more formalised. It
is now not uncommon for Investment Banks to
require Recruitment Consultancies to ensure that
a minimum of 20-30% of the candidates introduced
in a process are female.
As a firm that attaches a great deal of importance
to diversity – in both the campaigns we support
and the consultation we provide – we feel proud
to have been one of the catalysts for this change.
Juniorification
Traditionally, Selby Jennings has specialised in Vice
President – Director Level recruitment, with the
large majority of the placements we make falling
into this category. Although VP – Director Level
hires still make up the majority of the roles we have
placed over the course of the year, the ratio has
changed quite dramatically, with many Investment
Banks looking to add more Analysts and Associates.
The two most common reasons cited for this
preference are to improve upon the balance of a
team and to reduce operating costs.
Specialisation
With exception of the Tier 1 American banks,
many banks are narrowing their focus to target a
specific subset of the market, often cutting whole
teams in the process.A common trend is for banks
to become more specialised in covering Corporate
and/or Institutional clients derived from the same
geography as the bank itself, tailoring its strategy
and product range to match their needs.
THE TRENDS OF 2016

The below provides an overview of the current
salaries paid in London (including ‘top-ups’), the
bonuses people received last year and the bonuses
people expect to receive this year.
Each of the numbers below is approximate, they
are all in GBP and the bonus information disregards
candidates who did not receive a bonus and those
from Investment Banks which are able to pay
employees bonuses in excess of the 100-200% cap
employed elsewhere.
FIXED INCOME
FOREIGN EXCHANGE
EQUITIES
REMUNERATION SURVEY

It has been a profitable year for many in Fixed
Income, especially for those in Rates. Although
there have been challenges regarding the scarcity
of bonds – largely due to the strategy of mass-
buying employed by the European Central Bank –
the unusually high level of volatility in the markets
has enabled many to make reasonable-to-strong
returns.
In 2017 we expect to see an increasing number of
hires made in Government and Corporate Bond
Trading, as well as the continued hiring of senior
client-facing Structurers. Experience Salespeople
covering German Institutional clients are also in
high demand
FIXED INCOME

£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
£160,000
£180,000
£200,000
Analyst Associate VP Director
Mean Salary
Mean Bonus (Last Year)
Mean Bonus (This Year)
FIXED INCOME:
SALES
Title Salary Range
(£)
Mean
Salary (£)
Bonus Range
Paid LastYear (£)
Mean Bonus Paid
LastYear (£)
Bonus Range
Expected ThisYear (£)
Mean Bonus
Analyst £38,000 - £65,000 £52, 000 £1,000 - £18,000 £9,000 £5,000 - £30,000 £15,000
Associate £55,000 - £95,000 £71,000 £8,000 - £65,000 £42,000 £15,000 - £85,000 £60,000
VP £80,000 - £175,000 £118,000 £15,000 - £170,000 £96,000 £40,000 - £180,000 £134,000
Director £125,000 - £220,000 £177,000 £35,000 - £400,000 £139,000 £80,000 - £400,000 £180,000

£0
£50,000
£100,000
£150,000
£200,000
£250,000
Mean Salary
FIXED INCOME:
TRADING
Title Salary Range
(£)
Mean
Salary (£)
Bonus Range
Paid LastYear (£)
Mean Bonus Paid
LastYear (£)
Bonus Range
Mean Bonus
Analyst £40,000 - £65,000 £58,000 £5,000 - £14,000 £7,000 £5,000 - £40,000 £15,000
Associate £60,000 - £90,000 £78,000 £10,000 - £68,000 £50,000 £30,000 - £80,000 £70,000
VP £90,000 - £160,000 £122,000 £22,000 - £210,000 £112,000 £80,000 - £200,000 £145,000
Director £115,000 - £330,000 £168,000 £80,000 - £660,000 £142,000 £100,000 - £660,000 £208,000

£0
£50,000
£100,000
£150,000
£200,000
£250,000
Mean Salary
Title Salary Range
(£)
Mean
Salary (£)
Bonus Range
Paid LastYear (£)
Mean Bonus Paid
LastYear (£)
Bonus Range
Mean Bonus
Analyst £36,000 - £60,000 £48,000 £5,000 - £15,000 £10,000 £10,000 - £25,000 £13,000
Associate £62,000 - £90,000 £73,000 £5,000 - £45,000 £52,000 £20,000 - £60,000 £45,000
VP £90,000 - £200,000 £120,000 £32,000 - £200,000 £128,000 £70,000 - £250,000 £160,000
Director £135,000 - £260,000 £189,000 £70,000 - £410,000 £160,000 £120,000 - £500,000 £201,000
FIXED INCOME:
STRUCTURING

With the unpredictability seen in 2016, the
need for FX hedging has become increasingly
more obvious.
It is perhaps for this reason that some
Investment Banks have enjoyed a remarkable
year, with teams specialising in Corporate
Solutions (IRFX) appearing to be the most
fruitful. FX Trading teams have also enjoyed
2016, in many cases; the volatility of the
markets has provided them the opportunity
to generate large returns over short periods
of time.
One trend we have seen across FX is
the reduction of headcount in Spot FX
Trading teams as the sector becomes
more technologically focused. FX Trading, in
particular, has also been significantly impacted
by ‘juniorisation’, with many senior traders
choosing to pursue new opportunities within
similar sectors, such as Proprietary Trading,
Consultancy, etc.
FOREIGN EXHANGE

Title Salary Range
(£)
Mean
Salary (£)
Bonus Range
Paid LastYear (£)
Mean Bonus Paid
LastYear (£)
Bonus Range
Mean Bonus
Analyst £38,000 - £60,000 £48,000 £3,000 - £15,000 £9,000 £5,000 £12,000
Associate £50,000 - £80,000 £70,000 £15,000 - £60,000 £29,000 £20,000 - £80,000 £47,000
VP £78,000 - £220,000 £115,000 £15,000 - £170,000 £110,000 £40,000 - £220,000 £130,000
Director £140,000 - £300,000 £182,000 £35,000 - £400,000 £145,000 £100,000 - £600,000 £212,000
FOREIGN EXCHANGE:
SALES
£0
£50,000
£100,000
£150,000
£200,000
£250,000
Mean Salary
Mean Bonus Paid Last Year (£)
Mean Bonus Expected This Year (£)

£0
£50,000
£100,000
£150,000
£200,000
£250,000
Mean Salary
Title Salary Range
(£)
Mean
Salary (£)
Bonus Range
Paid LastYear (£)
Mean Bonus Paid
LastYear (£)
Bonus Range
Mean Bonus
Analyst £35,000 - £62,000 £45,000 £5,000 - £20,000 £8,000 £5,000 - £30,000 £12,000
Associate £50,000 - £90,000 £68,000 £10,000 - £90,000 £40,000 £25,000 - £120,000 £65,000
VP £75,000 - £200,000 £110,000 £10,000 - £172,000 £96,000 £50,000 - £150,000 £120,000
Director £110,000 - £330,000 £187,000 £35,000 - £460,000 £121,000 £80,000 - £460,000 £198,000
FOREIGN EXCHANGE:
TRADING

Title Salary Range
(£)
Mean
Salary (£)
Bonus Range
Paid LastYear (£)
Mean Bonus Paid
LastYear (£)
Bonus Range
Mean Bonus
Analyst £35,000 - £55,000 £42,000 £5,000 - £15,000 £7,000 £5,000 - £55,000 £17,000
Associate £45,000 - £75,000 £65,000 £10,000 - £62,000 £32,000 £20,000 - £115,000 £58,000
VP £80,000 - £130,000 £94,000 £22,000 - £110,000 £69,000 £50,000 - £110,000 £76,000
Director £125,000 - £310,000 £174,000 £35,000 - £240,000 £112,000 £75,000 - £400,000 £150,000
FOREIGN EXCHANGE:
STRUCTURING
£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
£160,000
£180,000
£200,000
Mean Salary

For many banks it has been a difficult year
across Equities, with some cutting ties with
these markets quite aggressively. As a result,
Broking Firms look set to capitalise, taking
a greater portion of market share from the
traditional big names.
One of the most notable trends in Equities
has been the demand for talented Delta
One Index Salespeople and MSCI Specialists
at Broking Firms – at Selby Jennings we have
seen almost every firm active in these spaces
looking to add. Into 2017 many Investment
Banks seem eager to build upon their
Equity Derivative Sales teams by attracting
candidates with Strategic/Event Driven Equity
Derivatives Sales experience.
AnotherkeytrendrelatestoMiFIDII.Although
it is not yet clear exactly how much these
regulations will affect the world of banking,
they will change the way in which people
are able to choose who they work with –
expanding upon the current criteria requiring
them to seek best execution – as well as the
way in which execution and research costs
are calculated and presented to clients. As a
result, there has been a notable increase in
the demand of talented Sales-Traders over
the year and a spike in Broking Firms securing
some of the more reputable Researchers in
EQUITIES

£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
£160,000
£180,000
£200,000
Mean Salary
Title Salary Range
(£)
Mean
Salary (£)
Bonus Range
Paid LastYear (£)
Mean Bonus Paid
LastYear (£)
Bonus Range
Mean Bonus
Analyst £38,000 - £68,000 £45,000 £1,000 - £25,000 £12,000 £5,000 - £30,000 £15,000
Associate £58,000 - £90,000 £68,000 £10,000 - £80,000 £32,000 £10,000 - £100,000 £35,000
VP £75,000 - £178,000 £115,000 £30,000 - £210,000 £82,000 £10,000 - £180,000 £58,000
Director £135,000 - £300,000 £182,000 £65,000 - £420,000 £110,000 £50,000 - £300,000 £100,000
EQUITIES:
SALES

£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
£160,000
£180,000
£200,000
Mean Salary
Title Salary Range
(£)
Mean
Salary (£)
Bonus Range
Paid LastYear (£)
Mean Bonus Paid
LastYear (£)
Bonus Range
Mean Bonus
Analyst £40,000 - £70,000 £46,000 £5,000 - £25,000 £9,000 £5,000 - £30,000 £17,000
Associate £60,000 - £90,000 £67,000 £8,000 - £90,000 £36,000 £10,000 - £60,000 £32,000
VP £80,000 - £175,000 £120,000 £25,000 - £240,000 £78,000 £30,000 - £200,000 £61,000
Director £115,000 - £310,000 £172,000 £60,000 - £350,000 £104,000 £50,000 - £200,000 £95,000
EQUITIES:
TRADING

£0
£20,000
£40,000
£60,000
£80,000
£100,000
£120,000
£140,000
£160,000
£180,000
£200,000
Mean Salary
Title Salary Range
(£)
Mean
Salary (£)
Bonus Range
Paid LastYear (£)
Mean Bonus Paid
LastYear (£)
Bonus Range
Mean Bonus
Analyst £38,000 - £58,000 £43,000 £3,000 - £23,000 £8,000 £5,000 - £40,000 £20,000
Associate £50,000 - £72,000 £29,000 £5,000 - £78,000 £40,000 £15,000 - £75,000 £43,000
VP £75,000 - £135,000 £105,000 £30,000 - £180,000 £84,000 £40,000 - £200,000 £70,000
Director £130,000 - £280,000 £174,000 £45,000 - 375,000 £112,000 £100,000 - £350,000 £102,000
EQUITIES:
STRUCTURING

As we come to the end of 2016 the Financial
Institutions which shape the Financial Markets
appear more positive and more certain than when
we started the year. 2017 is likely to bring some big
changes of its own, however, which will likely cause
a ripple effect across the sector in London.
Firstly, it appears that the two leading German
banks will make a number of changes in accordance
with the strategies they are in the process of
implementing. As such, many Salespeople, Traders
and Structurers look set to leave the banks.Where
they land will determine how the lost market share
will be divided – this looks especially true in Equities
and with regards to certain Derivatives.
A similar shift of market share could take place
following the changes expected from some of the
Italian banks, with Non-Performing Loan portfolios
looking to dictate strategies therein. The Illiquid
Credit market could become considerably more
profitable for some – especially for those on the
buy-side – depending on how and when these
changes take place.
Similarly, it remains to be seen how the changes
in the United States will affect the profits of those
operating in the Emerging Markets,with some banks
already discussing the reduction of headcount. It
seems likely, therefore, that there will be a number
of changes in this space, also.
AlthoughthefeelingatmostInvestmentBanksisthat
a sense of certainty is returning,following a number
of years without it, it is still likely that there will be a
high volume of movement this year. Redundancies
look probable and some of the higher performers
are currently looking to move due to a number of
different reasons – e.g.they expect to be underpaid,
underappreciated, unable to perform their job due
to internal restrictions, are growing unhappy with
the negative or political atmosphere around them,
etc.As always, movement creates opportunities for
others – with those willing to take a calculated risk
the most likely to reap the rewards.
Please note that the above salary surveys cover a significant
proportion of the market, within vastly different Investment
Banks taking into account different levels of seniority. If you
would like to learn more about what you should be earning
or paying, specific to your individual circumstances, please do
get in touch. Our Consultants in the FIFX EquitiesTeam will
be happy to help: FIFX@SelbyJennings.com.
SELBY JENNINGS

This guide has been brought to you
by Selby Jennings, part of the Phaidon
International.
Selby Jennings is a specialist provider of
Financial Services recruitment solutions
across Europe, the US, Asia and the
Middle East.
We believe every professional should
benefit from the advice of a trusted
partner throughout their career.
Contact Selby Jennings for more
information about career opportunities
in this sector, or if you are looking to
expand your team.
Contact us today:
www.selbyjennings.com
enquiries@selbyjennings.com
Enabling Exceptional Careers
Selby Jennings exists to enable exceptional career around
the world; we connect exceptional talent with exceptional
opportunities.
INDUSTRY INSIGHT

FIFX Equities: End of year report and Salary Survey 2017

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