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The three Wall Street jobs offering the biggest pay raises in the back, middle and front office

Date: 09 July 2014

The hiring landscape on Wall Street is much more optimistic than it was just a year ago. Yes, trading jobs and salaries are being cut seemingly every day, but banks in New York are still doing incremental hiring in the front, middle and back office.

But what are the hottest roles – those that are accompanying the largest increases in salary? We reached out to a few recruiters to find out.

M&A associates:

Specifically level III associates, say banking recruiters who cover New York for Selby Jennings.

Boutiques advisory firms have taken off in recent years – increasing their market share from 7% in 2008 to over 15% this year. Six boutique advisory firms climbed into the top 20 of the global M&A league table as of the end of June. And it hasn’t hurt that the pool everyone is sharing is getting larger. Global deal volume tipped north of $1.75 trillion, up a massive 75% year-over-year.

With all the new business, boutiques are picking off experienced, yet still relatively youthful, associates. “Base salaries have increased from an average of $140k to $170k, with bonus potential rising from an average of $140k to as much as $200k,” according to Jack Trudeau, head of consulting services for the Americas at Selby Jennings.

Notable boutique firms that are hiring include Moelis and Greenhill, as well as former Morgan Stanley rainmaker Paul Taubman, who recently launched his own firm and has already hired four former co-workers.

Expect this hiring trend to continue.

Basel III and CCAR specialists

If Citi had taught us anything this year, it’s that capital reporting and stress testing ought to be key priorities for banks.

In New York, professionals with Basel III and CCAR (Comprehensive Capital Analysis and Review) knowledge are hot commodities.

“Whereas most moves within the risk, regulatory, compliance and finance worlds are typically for a more modest bump in compensation, say in the 10%-15% range, we have seen a number of examples in recent times where candidates with relevant CCAR knowledge have been paid at a significant premium,” Careless said.

These folks have been seeing 35%-50% increases in base salaries due to the current demand in the market and the overall dearth of talent, he said.

Anti-money laundering specialists are also in high demand, though the salary increases may not reach such heights.

CVA quant analysts

The ability for investment banks to value, price and hedge against counterparty risk has never been more paramount, particularly as credit ratings at other companies remain stubbornly low.

In comes the need for those who can implement credit valuation adjustment (CVA) models. CVA quants are hot property in New York. Trudeau says that director-level quants can see an increase from a base salary of $200k to $250-$300k with an average bonus potential of 100% rising up to 150%.

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