GREENWICH, Conn. - The average salary of pension and endowment fund equities derivatives professionals rose 9.6% in 1997 to $114,000 per year, up from $104,000 the previous year, according to Greenwich Associates' 1997 institutional equity derivatives survey.
And 78% of pension and endowment equity derivatives specialists were eligible for a bonus, which averaged $46,000.
But salary and bonus at pensions and endowments still lags those of investment managers, hedge fund managers, insurers and banks.
Equity derivatives specialists at investment management firms were paid $146,000 with 88% receiving an average bonus of $228,000.
Hedge fund equity derivatives pros also were paid an average salary of $146,000, with an average bonus of $229,000. At insurers, salaries were $129,000 with 100% receiving an average bonus of $75,000, while at banks, salaries averaged $123,000, with 100% receiving an average bonus of $242,000.
Institutional derivatives use continues to be tilted toward exchange-traded derivatives, with use of almost all types of listed derivatives outpacing all types of over-the-counter equity derivatives.
Among the 159 active equity derivative users surveyed, the most used equity derivative was equity index futures, where 111 reported its use. Sixty-five of the institutions reported the use of OTC equity options dated one year or less.
Only 38 of the respondents reported the use of warrants, and 41 reported the use of structured products, which includes equity-linked notes, and synthetic convertibles.
In an analysis of the survey results, Greenwich says institutional trading of derivatives totaled $3.8 billion in notional amounts in the year ended March 31, up from $2.5 billion the previous one year period.
The firm also said four dealer firms, which were not identified, dominate the industry in terms of recognition and relationships.
Because of the concentration, Greenwich consultants said institutions almost have a "fiduciary responsibility" to have one or two of those top-tier firms at the top of their broker list.
