Creditflux Newsletter

Aggressive staff retention tactics are providing little defence against the lure of guaranteed bonuses, say credit market participants.

Banks are using a raft of ploys to keep hold of top professionals in Europe, including deferral schemes in discounted stock, fixed term contracts and higher basic salaries.

But the drive by several major investments banks to rebuild distribution and trading platforms means that traders and sales people are still prepared to jump ship. The biggest hirers in Europe are said to be Bank of America Merrill Lynch, UBS, RBS, Nomura, Morgan Stanley and Citi.

“High demand to hire is allowing the best sales and trading staff to lock in last year’s disproportionate return,” says Russell Clarke, a founding partner at new London-headquartered executive search boutique Figtree. “Furthermore, all banks are buying out deferred awards and opportunities exist to arbitrage between the schemes.”

Figtree is looking to take advantage of the continuing groundswell in demand for credit staff. Clarke has worked as a head hunter for 14 years and was formerly head of fixed income at Mantis Partners.

He founded Figtree with ex-derivatives marketer Victoria Macpherson.