Since the Lehman collapse, the importance of Middle and Back Office departments has come to the forefront of any banking CEO's mind, thereby creating a push for talent, especially at managerial level. We investigate how this reflects on a career in the sector, across all levels.
Moving up through the ranks is a much slower process for Middle & Back Office professionals than it is in front office jobs: expect to graduate from Analyst to Associate in 6 years on average, vs. 2 years only in front office.
Pay structure is flat through to Director level, when compared to the financial services sector overall. However, a clear spike at MD level shows top managerial positions being valued and well rewarded: with a USD 570,000 median, levels are hot on the heels of front office MD packages.
Starting salaries are not far from front office jobs, with a median of USD 65,000 but the lack of uptick in the curve must be challenging for middle and back office professionals, especially as their close relationship with the trading floor allows a peek at how fast their front office peers rise through the ranks to VP and Director levels
Nerves of steel are an essential part of the job as traders and salespeople pass their frustration at a failed transaction on the Middle and Back Office teams; but take a deep breath, as regulatory constraints, concerns over counterparty risk may well end up propulsing top employees in the spotlight.
Overall, Middle and Back Office within a bank is a sector which not only pays relatively well at an early stage but offers some real rewards and exciting challenges for those who have the stamina to handle the pressure of the 'wilderness years' from Associate to Director level.
All figures are total compensation (Salary + Bonus) for middle and back office professionals in Investment Banking and Markets. Q1: 25% of all entries are lower than this value; Q3: 75% of all entries are lower than this value.
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KNOW WHERE YOU STAND
KNOW WHERE YOU STAND