Portfolio managers' salaries and bonuses have risen sharply in the past year, a survey of UK private banking by Monks Partnership, the remuneration advisers, shows.
Monks said the pay increases showed that banks were trying to attract more high net worth clients. They were providing increasingly sophisticated investment services, and this had led to more demand for experienced and high calibre staff.
Senior directors in portfolio management were earning 140,000 a year in May 2001, compared to 129,000 a year earlier. At the junior level, they were earning 114,000, compared to 95,000. Median bonus levels rose from 16% to 23%.
The pay of assistant directors in portfolio management also rose, though by less.
Salaries of senior directors of private banking were 110,000 in the 2001 survey, compared to 98,000 in 2000. At the junior level, salaries also increased significantly to 85,000, from 76,000 last year. But their bonuses fell to a median of 13% in 2001, compared to 29% last year.
Ruffle said that bonuses at this level were probably based on an individual branch's performance and were not necessarily linked to uncertain or poor economic conditions.
At lower private banking levels, salaries had not changed much over the year. "More of a trickle upwards rather than a leap from last year", Ruffle said.
Heads of customer services at senior level had salaries of 38,000, compared to 37,000 last year. At the junior level, salaries increased to 31,000 from 30,000. Median bonuses have increased from 8% to 9% over the year.
Monks' City Pay Guide provides pay and bonus data for over 440 jobs in the finance sector, based on information gathered from 185, mostly mid-sized financial organisations. For more information contact Carolynne Ruffle at Monks Partnership on 01799 542222.