Top middle and back office pay similar to front office

Middle and back office managers in London’s investment banking and markets sector can expect to earn around £350,000 (€257,000) research shows.

The figure shows the median salary and bonus value for the London industry and is not far behind similar front office positions, according to Emolument, which produces industry salary data.

However, middle and back office professionals move up through the hierarchy much slower than those in front office positions.

Pay is slow to increase through to director level, but there is a clear spike at managing director level which “shows that top managerial positions are valued and well rewarded”, says the firm which used salary and bonus data from 312 professionals.

Emolument says “the lack of uptick in the curve must be challenging for middle and back office professionals, especially as their close relationship with the trading floor lets them see how quickly their front office peers rise through the ranks to [vice president] and director levels.

Middle and back office jobs are stressful positions as traders and salespeople often take out their frustration on operations teams, says Emolument.

Though there is a slow pay and hierarchical progression, rewards are to be reaped if professionals hold out for top jobs, which have very attractive packages and recognise the essential strategic nature of the function.

Starting salaries are not far behind front office jobs, with a median of £40,000.

The highest salaries in the sector in the third quarter of 2013, were: analyst (£45,000); associate (£65,000); vice president (£110,000); director (£196,000); and managing director (£480,000).

Top middle and back office professionals have been essential in the last few years as capital requirements have become more stringent and risk exposure has been at the forefront of bank management, says Robert Benson, chief executive of Emolument.com.

©2014 funds europe

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