Credit derivatives traders are top earners

Those with five years' experience or more pulled in typical bonuses of 300% to 600% of salary in London last year, compared with 100% to 300% for their colleagues in credit derivatives sales.

Bradley Rood, managing director of Jared James, said: "Many second-tier houses have been expanding their trading teams. If bonuses aren't high, people will jump ship."

An important factor is the rapid growth of proprietary trading, which has been profitable for banks and their individual traders. Even so, the job market has cooled down from hectic levels a year ago and bonuses in 2002 were the same as the previous year or slightly lower.

Rood said senior staff were among those still able to switch jobs, including Mark Davies who left Credit Suisse First Boston to join Bear Stearns this month as a managing director in credit derivatives, based in New York.

Staff in equity derivatives are also doing well, Jared James said. "No one has been aggressively recruiting, but neither have we seen the sort of unsightly bloodletting that has become a hallmark of the cash equity sector."

Senior equity derivatives sales staff earned bonuses of 150% to 350% last year, slightly more

than their colleagues in credit derivatives sales. On the trading side, however, equity derivatives bonuses were less than half the credit derivatives level.

For staff with three to five years' experience, bonuses ranged between 50% and 200% in credit and equity derivatives sales and trading.

Jared James said it spoke to hundreds of staff in top tier and smaller firms to compile its survey.