Introduction:

Welcome to the JM Index, a quarterly snapshot of salaries within the Investment Banking sector. The figures quoted are base salaries and do not include bonuses and benefits. In order to avoid generic bracketing we have taken the mid-range of salaries of candidates that we have qualified over the last 3 months and rounded to the nearest increment of £5,000. There will be variables with specific roles and certain clients may place different emphasis on certain skills. Bandings may also vary, but the levels are designed to give an indication of seniority and experience. When no figures were available, or the level within a category was not relevant we have indicated it as “not applicable” (n/a). We hope that you find it useful and we have added some brief observations below the table.

Commentary:

Looking over the last Quarter we observed the following:

• Despite the backdrop of the global credit crunch we have yet to see any direct impact on salaries in the sector. That is not to suggest that we are inoculated from such influence, more that any tangible impact is more likely to be witnessed in the forthcoming quarters.
• General activity is unsurprisingly slower, but not stagnant. Authorisation, or “sign-off” for new hires has been elevated within the corporate hierarchy and is thus more protracted. Consequently, recruiters’ candidate management skills are being tested as the elasticity of the recruitment life cycle is stretched to capacity.
• The key area of demand over the last Quarter has been for Business Analysts. We have witnessed strong levels of demand for Analysts with specific business exposure and product knowledge. Front Office derivatives experience is at a premium, with particular emphasis on exotic products across Commodities, Interest Rates, Credit and Equities. This has driven an approximate 5% lift in salaries for this function.
• Most other categories with the Index have remained constant against Q4, 07 with an overall increase of just 1.2%.
• In terms of specific client demand, we have rarely seen such extremes within the Sector. Banks with weighted exposure to sub-prime positions are static, but there are institutions that have seized the initiative with some aggressive moves for IT talent. Such positive sentiment is respected within the candidate community.
• The next Quarter may prove critical to the stability of salaries within Investment Banking Technology. With continued stagnation, or retreat Quarter 2’s Index may have a more submissive theme.