Traders’ Salaries Expected to Grow 10 Percent in 2014: Options Group

This year is going to be an OK one for traders and their wallets, according to a new study.

The report noted compensation trends are most favorable for investment banking, equity derivatives and credit professionals in the U.S., EMEA and Asia. In the U.S. and EMEA, Options Group forecasts that average compensation in rates will decrease 15 percent to 20 percent, while compensation will increase around 10 percent for commodities, securitized products and cash equity professionals.

Options Group, a global executive search and strategic consulting firm, announced in its 2014 Mid-Year review that hiring and compensation trends for financial services professionals, which are based upon market conditions and hiring trends for the first four months of 2014, that traders and other pros can expect modest pay and bonus increases. The report estimated that year-over-year compensation changes for 2014 will be moderate, ranging from an increase of 15 percent to a decrease of 15 percent.

The report is the culmination of four months of work contributed by over 120 global consultants and research professionals. The candidate survey portion of the report was conducted from March 12 through April 16. It encompasses an analysis of historical data and current trends gathered through Options Group’s discussions with candidates, consultants and clients and offers forward-looking compensation projections by product and geographical region. Percentage changes in compensation are based on employees’ expectations and Options Group’s perspectives on current trends.

The report noted other trends in 2014, such as: more employed professionals looking for other opportunities than in previous years, firms with a “black eye” have been offering usually high premiums to attract professionals, banks leading in market share are playing defense and using counteroffers to retain staff and mid-sized firms are gaining momentum as “brand” matters less to candidates.

The complete 70-page report includes:

– Average change in 2014 total compensation (based on market conditions up to April 30, 2014) for professionals in FICC, equities, investment banking, electronic trading, information technology, quantitative research, risk management and private wealth management in the US, EMEA, Asia and Japan.
– Compensation tables comparing compensation levels by security and function across major firm types.
– Counteroffer and rejected offer examples.
– Key hiring and compensation trends for each product in each region.
– Select people moves for each category.
– Summary of Spring Candidate Survey Results.

The entire report is available direct from Options Group.