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Private bankers and their salaries

Date: 09 Mar 2007

Citywealth

According to Simon Culliford of Executive Search firm Culliford Edmonds, a genuine private banker is like a Harley Street doctor, running relationships, diagnosing and anticipating financial health problems and finding solutions. A wealth manager is more linear in that the individuals will have a particular role like tax planner or business development to sports agents, intermediaries or charities.

The best salaries to be had are from the big name institutions with top tier relationship managers earning c £200k with bonuses. Culliford says the base salary is £100-£150k with bonuses doubling if the individual is performing. This compares favourably against a corporate business developer who would expect between £70-£100k with around 50% bonus on top.

Wealth management institutions have favoured discretionary bonuses in the past which means a dreaded wait for a yearly announcement but Culliford warns this method has become old fashioned. He says “if people add value, they are entitled to a share of business profits.” A share equates to a percentage value of client assets brought under management, a model favoured by American institutions and also successfully used by EFG Bank.

An ideal candidate would need to have around 40 to 80 clients and client revenues of ¬£1m per annum based on around ¬£100m AUM (assets under management). Simon confirms that this level of ‘book’ would take around three years to build up.

I ask if this means its hats in the air time and break open the Bolli’? He is pragmatic “Although demand is outstripping supply it’s become increasingly difficult to find good candidates.”

Over in wealth management paradise Montecarlo Robert Rutter, 1st Vice President, Global Private Client Group of Merrill Lynch says “Monaco has similar remuneration to London but the benefit here is that they don’t pay income tax. Rutter comments “I’m seeing a a steady flow of senior bankers relocating to Monaco.”

So its official, you can earn more in private wealth management than corporate institutional and with hedge fund managers spotted luring staff from private banks, salary expectations look set to remain on the upward curve.

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