Banking & Asset Management Salary Survey

Banking & Asset

Management

Salary Survey

2017

Prepared by

Tara Bagley ¨C Page Executive

BANKING & ASSET MANAGEMENT

SALARY SURVEY 2017

INTRODUCTION

2016 - What a tricky year for recruiting in the city; to start with the stalemate in the lead

up to Brexit, then the unexpected Brexit result, then complete shock & indecision and

now the unexpected US election result (to the media anyway). And let's not forget the

forever increasing pressure brought about by regulation.

Should we all be white knuckled as we approach 2017? It seems not... there is a

glimmer of hope on the horizon. M&A volumes are up and I'm struggling to get my

leveraged finance clients out for even a coffee before Christmas¡­ they're too busy,

some with up to 6 deals to close before the end of the year, and it's the end of

November!

Moreover, whilst a number of large banks have reassessed their strategies and cut

teams, particularly related to the emerging markets and on their trading floors, other

banks have seized the opportunity of less competition and are growing the same

teams.

Furthermore, banks are hinting that they are moving teams to Europe, with quite a few

of them starting the transition well before the Brexit vote. It does seem that for many of

these banks, the cost and disruption of moving their operations will be too great, and

instead they will ride the Brexit wave and are devising a new strategy to work within

the new market conditions.

However, there are other European banks who are moving their trading desks to

London.

Additionally there are a number of international financial services firms who only have

representation on the European continent, hence they plan to open a London office as

a result of Brexit to do business in the UK.

Some European banks are focused on growing their London teams in 2017 as their

home markets are very competitive and feel that London is the best platform to have a

globally focused origination team.

Next year we expect to see headcount growth in direct lending, corporate and financial

institutions coverage, credit analysis, trade finance, asset finance, Fintech, SME

banking, M&A, private equity (including renewables and infrastructure).

Thus in summary, we expect 2017 to be a year of change and a time for banks and

funds to strengthen themselves in this new environment.

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CONTENTS PAGE

DEBT

4. Leveraged Finance and High Yield

5. Direct Lending and Leveraged Finance Buyside

6. Restructuring & Debt Advisory

7. Corporate Coverage

8. Financial Institutions Coverage / Solutions

9. Project Finance

10.Syndications

11.Debt Capital Markets and Fixed Income

12.Credit / Credit Research

13.Leasing Finance & Asset Finance

14.Trade Finance

15.Real Estate

16.Securitisation/Structured Finance

EQUITY

17.Infrastructure

18.Private Equity

19.M&A ¨C Corporate Finance

20.Asset Management/ Public Equity Salary Data

ADDITIONAL

21.About the team

22.Page Group

3

LEVERAGED FINANCE AND HIGH YIELD

4

Competition for deals has been fierce in 2016, with very high levered positions

and covenant light deals ¡°the norm¡± as a result of financial sponsor / private

equity pressure.

Corporate banks who do not have a track record in high yield have found it

difficult to compete with investment banks on larger deals, hence many have

moved towards mid-market transactions.

There has been limited hiring at Director and MD level in banking origination

teams, with the bulk of recruitment at Analyst and Associate levels. As a result

compensation for ¡°juniors¡± is disproportionally high compared to experienced

members of the team.

There have been a number of redundancies at MD level in corporate and

investment banks as banks focus on cost cutting.

Base salaries have remained relatively stable and bonuses were largely flat in

2016 compared to 2015. The expectation is there will be little change in 2017, if

anything a downward pressure on bonuses.

There is a significant variance between compensation that commercial banks

and investment banks pay. Director¡¯s salaries at investment banks is often

double of a Director at a commercial bank.

The demand for Western European languages is high (German, Dutch, French

and Nordics in particular). However this is heavily outweighed by recent and

relevant deal experience.

There have been very few buy-outs/guarantees in 2016 with many banks having

a ¡°no buyout¡± policy. To get candidates to join, many banks have compensated

new joiners by offering significant base salary increases and / or verbally

promising floor bonuses in 2017. Often banks are happy to wait for candidates to

resign after the next bonus round.

Role

Experience

Salary (?)

Bonus (%¡¯

age)

Analyst

1-3 years¡¯

45000-70000

20-50

Associate

3-5 years¡¯

55000-120000

20-80

VP/AD

85000-150000

30-100

Director

130000-270000

50-150

MD

200000-500000+

50-200

DIRECT LENDING &

LEVERAGED FINANCE BUYSIDE

5

Direct Lending

Most leveraged finance banking candidates from MD to Analyst levels are focused on

trying to move to direct lenders, investment managers or private equity firms,

however these opportunities are limited and highly competitive.

Most roles are VP and below, although we have seen a number of new direct lending

platforms recently hire new heads and they will build new teams in 2017.

Many of the new heads of direct lending platforms have recently joined from midmarket leveraged finance origination teams in banks as there is a limited talent pool

from other direct lending platforms in London. This provisional opportunity for

bankers is expected to be short-lived as once heads are appointed at these new

platforms they are unlikely to move for some time.

Candidates are often disappointed by the lower compensation of these roles

compared to leveraged finance origination roles in banking. Additionally they

regularly have to take a drop in their base salary and walk away from accrued

bonuses to make the move.

However better work-life balance, less bureaucracy and the potential of earning carry

often provide enough motivation to make the move despite the potential short-term

income loss.

Role

Experience

Salary (?)

Bonus (%¡¯ age)

Analyst

1-3 years¡¯

45000-65000

10-50

Associate

3-5 years¡¯

55000-110000

20-70

VP/AD

85000-150000

30-100

Director

130000-200000

50-150

MD

200000-300000

50-200+

Leveraged Finance Buyside

The leveraged finance and high yield buyside recruitment market has been relatively

flat in 2016, with the exception of replacement hiring. A number of new CLOs have

been set up and there are several planned for 2017. We expect this to be a growth area

in 2017.

Role

Experience

Salary (?)

Bonus (%¡¯ age)

Analyst

1-3 years¡¯

45000-60000

10-50

Associate

3-5 years¡¯

65000-110000

20-70

VP/AD

90000-140000

30-100

Director

120000-220000

70-150

MD

200000-400000

100-200+

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