Latin Finance - September/October 2010 - 30

compensation survey

“Bonuses in 2010 reflect the activity in the markets in 2009, when a lot of money was made because there were a lot of structures to unwind and the economy didn’t stop,” says Bolotnicki. “Some even made more money than before the crisis, because there was a lot to be done that hadn’t been necessary to do before,” he adds. Despite all the bullish influences, Bolotnicki does not expect there to be excessive salary inflation. “People are being more rational and will definitely think twice before giving unsustainable compensation,” he says.

BNP Paribas to focus on strategic advisory coverage in Brazil, in particular on oil & gas and metals & mining. It has also been making some internal changes, having recently promoted Edward Sanchez to head corporate banking.

Rebranding and Rebuilding

Searching Through the Summer

Headhunters say all the top international and local banks – investment and commercial – are pushing aggressively to hire, beyond the typical cycle. “Things are unusually active for this time of the year,” says one, speaking in early August. “Usually by now searches are on hold until the following year, but there are some hires that need to be made.” The recruiter highlights Eduardo Cruz, the new head of global banking for LatAm at Citi, – which lost a Brazil team to Goldman Sachs – as one of the managers most keen to hire. “We’ve got to get the right kind of people into the Brazilian market. We are aggressively looking to hire A-level talent that really makes a very big difference,” Cruz tells LatinFinance. The bank recently appointed JeanMarc Dreyer as a senior member of its LatAm investment banking team from

Bank of America is also building out its team, making senior hires in what one recruiter said was an effort to re-brand its business. Barclays is cited as one of the most aggressive banks in terms of hiring over the past year, enhancing its operations in sales, M&A, DCM, ECM. It also set up an equity sales trading business with a local brokerage firm. Several juniors were said to have joined from Santander, because of better compensation, including Ricardo Urada, Bas Mul and Rodrigo Ragazzi, who all made the switch within the last six months to Barclays’ Brazil investment bank arm. Société Générale has made some big hires from BNP Paribas for its loans and DCM platforms. BBVA is also ramping up, recently hiring Alberto Carreño from Bank of America Merrill Lynch as a VP in M&A. And Deutsche has shown appetite for local business, recently hiring Waldo Perez Leskovar from Santander as a director responsible for M&A origination and execution for Brazil, as well as Caio Scantamburlo Costa as a director from ING. Meanwhile, UBS is back in the market and buying local operations, including brokerage Link. Since the start of the year, the Swiss bank has recruited some 37

bankers at a variety of levels across LatAm. “We’re paying competitively, but we’re not doing anything crazy,” Gerard Cremoux, co-head of LatAm investment banking at UBS, tells LatinFinance. “Hiring 37 people shows that net-net we are growing, and we’re growing very fast,” he adds. Standard Chartered has also bought a bank, and Nomura is starting to look to apply for a license. Elsewhere, Bank of China is also said to be shopping around in Brazil for relationship managers in trade and corporate finance to execute crossborder deals with big Brazilian corporates that trade with China. “They want to establish senior corporate relationships and have a good presence in the region,” says Bolotnicki. Meanwhile, RBS is close to having its banking license to set up a Brazil operation, and is hiring. “It is the most relevant new player to come in strong on the hiring front,” says a headhunter. Credit Suisse and JPMorgan are still said to be those with the strongest LatAm teams, and JPMorgan is said to be looking to build out a new asset management team as well as talking to senior and mid level bankers about joining the bank, says the headhunter.

Locals Step Up

Domestic institutions are also building out business aggressively, and are in a strong position to compete with international players. BTG Pactual is making one of the biggest hiring pushes, with insiders touting the partnership structure as a major

Brazil DCM Compensation ($1,000s)
Robust increase at mid-level Base Low Analyst 1st Year 2nd Year 3rd Year 1st Year 2nd Year 3rd Year 55 65 85 90 120 150 180 250 350 High 65 85 100 120 150 175 200 300 450 Low 40 60 70 80 90 120 220 450 850 Bonus High 50 70 80 90 110 150 350 700 1,200 Total Compensation Low 95 125 155 170 210 270 400 700 1,200 High 115 155 180 210 260 325 550 1,000 1,650 2010 vs 2009 % Change Low +27 +32 +19 +21 +20 +17 +14 +17 +14 High +21 +35 +29 +27 +30 +30 +22 +25 +7

Associate

VP Director MD
Source: Options Group

30 LatinFinance

September/October 2010

Latin Finance - September/October 2010

Table of Contents for the Digital Edition of Latin Finance - September/October 2010