2022 Quant and tech banking bonuses skyrocket for a select few
As we approach the end of the year, quant and tech employees in financial services are either eagerly awaiting or nervously dreading their bonuses. They'll be happy to hear, therefore, that this year's total compensation is likely to be up, although the increase won't be spread as evenly as some might hope.
The newly released compensation report from Wall Street talent acquisition and development firm Options Group predicts that quant, risk, compliance and tech will increase more than for any front office banking division. Globally, total compensation across these areas of middle office is expected to rise by 7.4% in 2022, nearly triple the 2.5% increase of 2021.
When broken down by region, however, things become a little more interesting. Within quant, risk, compliance and tech jobs, Options Group says the big winners this year area in EMEA. It predicts that EMEA staff will experience a staggering increase of 19.1% increase in pay this year, followed closely by India, where pay will rise 18.6%.
Pay increases in other regions are considerably lower. Quant, risk tech and compliance staff in the US are expected to receive a pay increase of just 4%, whilst their colleagues in Asia can expect a mere 3.1%.
Why is pay rising? Options Group CEO Mike Karp tells us that “in the quant space, pay is rising fast because everyone wants to hire the same people,” and that “tech firms, trading firms and banks are all chasing super quants and coders.”
In EMEA in particular, pay is rising to match US levels. One quant and technology headhunter says the near 20% increase reflects the fact that, "a that a lot of firms have made a lot of money in the past few years.” As firms compete for talent, he says London “pay is ballooning.”
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