McLagan has an extensive product line and consulting practice geared to the needs of the fixed income business.
Our team of experts is available to advise clients on a broad spectrum of topics, including compensation plan design, business benchmarking and cost savings.
Our compensation surveys include salary, cash incentive and long-term awards for sales, trading, origination and quant / structuring roles across all products: rates, credit, mortgage-backed and asset-backed securities, emerging markets, foreign exchange, money markets and municipals. Over 135 firms participate in our annual fixed income compensation benchmarking surveys globally.
Our Gauge product uses detailed general ledger data to assess a firm’s competitive position across a broad array of performance metrics covering fixed income divisions and products, including revenue, staffing, costs and capital.
Custom Methods of Pay Studies are conducted across various types of firms (e.g. global banks, regional broker / dealers, commodity firms, proprietary trading firms) providing data on clients’ incentive funding approaches, payout rates, allocation of awards, mix of pay, and utilization of long-term incentives.
McLagan’s coverage is global, with offices in Stamford, Chicago, New York, London, Japan, Hong Kong, India and Dubai, across sales and trading, origination and research.
McLagan has recently completed consulting assignments in fixed income including the following:
- Advised a US commercial bank on appropriate pay methods and funding levels for their foreign exchange, derivatives and syndicated loan divisions
- Reviewed competitive market pay practices a for a major global commodity trading firm, including incentive funding approaches and utilization of long-term awards
- Advised the CFO of a global investment bank on appropriate incentive funding across the fixed income division based on performance, product mix and capital utilization
- Commissioned by the board of a privately held proprietary trading firm to review a new compensation structure regarding it’s alignment to management’s objectives