Latin Finance - July 2008 - (Page 20)

compensation survey Brazil ECM Compensation AVERAGE 1st Year 2nd Year 3rd Year 1st Year 2nd Year 3rd Year Base $30,000-$35,000 $35,000-$40,000 $40,000-$50,000 $50,000-$60,000 $60,000-$80,000 $80,000-$100,000 $100,000-$125,000 $125,000-$150,000 $150,000-$200,000 Bonus $30,000-$40,000 $40,000-$50,000 $50,000-$60,000 $60,000-$70,000 $75,000-$90,000 $80,000-$110,000 $225,000-$350,000 $400,000-$600,000 $900,000-$1.1m PREDICTED COMPENSATION RANGE From To $45,000 $100,000 $60,000 $115,000 $70,000 $125,000 $90,000 $150,000 $100,000 $180,000 $140,000 $220,000 $300,000 $525,000 $525,000 $800,000 $1m $1.8m Analyst Associate VP Director MD Source: Options Group Intelligence Unit Brazil Sales & Trading Compensation AVERAGE Associate VP Director MD Source: Options Group Intelligence Unit Base $60,000-$80,000 $100,000-$120,000 $125,000 $150,000 Bonus $100,000-$125,000 $200,000-$250,000 $500,000-$650,000 $850,000-$1m PREDICTED COMPENSATION RANGE From To $150,000 $250,000 $250,000 $400,000 $500,000 $800,000 $900,000 $1.3m Brazil Equity Research Compensation AVERAGE Analyst Associate VP Head of Research Source: Options Group Intelligence Unit Base $30,000-$40,000 $60,000-$80,000 $100,000-$125,000 $150,000 Bonus $50,000-$60,000 $80,000-$100,000 $250,000-$350,000 $700,000-$900,000 PREDICTED COMPENSATION RANGE From To $60,000 $125,000 $125,000 $225,000 $225,000 $600,000 $750,000 $1.1m the IPO market slowed down a little bit,” says Roberto Nishikawa, CEO of Itaú Securities, speaking of compensation. “Revenue for the foreign institutions is down across the board, so that may affect compensation levels,” concurs the head of a US-based shop’s LatAm group, who asked not to be identified. Local Advantage Deutsche’s loss to Itaú highlights the attractions of working for a strong local institution when foreign firms are taking such a pummeling. This is particularly the case in Brazil, where Itaú, Bradesco and Unibanco have the upper hand because of deep relations across the corporate board and access to strong local currency balance sheets. Besides Brazilian real-denominated packages – preferable given the state of the US currency – locals are offering the majority of remuneration in cash, and only stock options for the most senior people. By contrast, some international firms in Brazil are capping out the cash component of packages and replacing it with large chunks of stock, which is less appealing to senior executives only looking to stay three to five years. “That’s going to be a real disincentive for local talent to stay at the global banks and a real advantage for the Brazilians to step up and take advantage,” says DeLucia. On top of this, locals are offering overall compensation to match that of international arrivals. Locals also have a reputation for slow and steady growth in staff, rather the historical pattern of hiring hundreds of people one year and letting go of hundreds more the next. “The trend has been reversed. Now the local shops poach from the international firms and it becomes almost impossible to compete because at some point you have to keep some proportion between what people are paid on a global scale – at a time when you are letting so many people go and are not paying anyone particularly well,” says a senior investment banker, who asked not to be identified. Itaú Securities is taking advantage of problems at its global competitors to 20 LATINFINANCE July/August 2008

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Latin Finance - July 2008 Contents Investment Banking Outlook Compensation Survey Colombia Investment Banking Borrowers vs. Investors Banorte Profile Braskem Financing Strategy Brazil Hydro Finance Peru Port Privatization Panama Money Flows Argentina Local Markets Guide to Banking Technology Who Said That?

Latin Finance - July 2008

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