IT developers at investment banks are doubling their remuneration by jumping ship to hedge fund start-ups, claims technology staffing company ReThink Recruitment.
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The firm said IT professionals are being awarded a £80,000-£100,000 basic salary with a guaranteed bonus. This constitutes double previous levels of pay for the sector. This level of compensation is becoming increasingly common among start-up hedge funds, ReThink Recruitment added.
Hedge fund start-ups are poaching staff due to pressure on banks to limit and defer bonuses and pay only a small percentage in cash, said the recruitment firm.
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Fhamid Malik, head of financial services at ReThink Recruitment, said: "There has been a flurry of new hedge funds starting up in London - we have acted for four in the last few months. IT infrastructure is critical to how these funds trade, so they are prepared to pay a premium for the right IT skills."
"IT is critical to competitive advantage in the financial services industry, so banks will need to find innovative ways to retain staff if they are to compete in this escalating arms race," added Fhamid Malik.
CTOs, lead algorithmic developers and technical architects are also being offered equity in start-up funds, boosting their total compensation to six-figure sums, it said.