A panel of specialist headhunters give their assessment of typical pay packages:
Salary of MD, European Corporate Finance and M&A, US investment
bank: 120,000 - 150,000, total package 700,000 - 1m
Corporate finance and M&A is the glamorous end of investment banking and
offers pay packages to match for those who reach the upper echelons.
People who reach MD level in this sector in a US bank tend to come from
traditional backgrounds with a top flight academic record from Oxbridge or a
redbrick university, followed by a steady climb up the greasy pole in a
handful of big name banks.
An MD in this position would probably be in their 40s, and a sector specialist
who has previously headed a specialist team. Once at this level, the role
centres on generating new business and pressing the flesh with existing
and potential clients.
Sam Dewhurst, a consultant with the firm recruitment Odgers, explains: "Reaching this level is a gradual process of gaining the experience of doing deals and then moving towards a more relationship-based role."
"In US firms, people tend to do origination later," he says. "At a
European bank you get more origination experience earlier." There are also
likely to be more people who move into corporate finance from accountancy or
industry, bringing sector knowledge but not deal experience, in a European bank
compared to a US bank.
Bonus rates this year may not be quite as healthy as a year ago, although an
individual who has a good year, even if their bank has done less well,
should not suffer, says Dewhurst. There is always an element of retention in
an MD's bonus, as well as of performance.
Hiring, however, is pretty quiet. Twelve to 18 months ago the sector was
buzzing, but as the downturn bites, banks are holding or reducing
headcounts. Nevertheless, says Lena Baillie, consultant in corporate finance
at the recruitment firm Longbridge, if anyone is building up right now in
corporate finance, it will be within European sectors.
Figures and commentary for '"How much am I worth?" are provided by the following firms: Alexander Mann, Longbridge and Odgers Ray & Berndtson.