eFinancialCareers

Sometimes dismissed as the 'über geeks' of the City, quants may have the last laugh. Research suggests pay packets have soared by as much as 40% this year.

A study by headhunter Stephen Raby Associates has found that base salaries for most quant types rose by a modest 6% to 20% in the past 12 months. But in areas such as exotic interest rate derivatives, the rises were much steeper, as much as 30%.

When bonuses are also taken into account, some quants have done rather well out of 2006. Associates, for example, have seen pay rise from between £50k and £150k, to between £60k and £200k, according to Craig Fergusson, the consultant at Stephen Raby who authored the research.

“It is purely because there’s a squeeze. There is high demand and little in the way of resources around. People are having to steal or poach, and having to pay for it,” Fergusson tells eFinancialCareers.

With hedge funds becoming more switched on to the sorts of skills quants can bring, the bubble is unlikely to burst any time soon, Fergusson predicts.

“At the moment there are fewer people being pulled because of the bonus situation. But come the New Year it is going to be an area of high intensity,” he says.

Craig Millar, managing director of quant recruiter Millar Associates, confirms quants are unquantifiably popular. “For the past three years there has been a real shortage of quants in some areas, so they [banks] are just having to put money down,” he tells us.

More commodity trading desks, increased interest in Asia and a more educated client base have all helped fuel demand.

“It is all part of quantification of finance – but it is not universal,” he argues.

Quant pay

Associates 2006: £60k-£200k; 2005: £50k-£150k

Associate directors 2006: £120k-£300k; 2005: £85k-£240k

Directors 2006: £240k-£310k; 2005: £220k-£300k

Managing directors 2006: £300k-£620k; 2005: £250k-£550k