Fixed Income
McLagan has an extensive product/consulting offering for the Fixed Income business.
We have a team of experts available to advise our clients on a broad spectrum of topics, including compensation plan design, executive pay, business benchmarking, staffing and cost savings.
The Gauge product uses detailed general ledger data to assess a firm's competitive position across a broad array of cost metrics.
We offer a variety of other products, as detailed below.
Our core surveys and products cover the UK, France, Germany, Spain, Italy, Switzerland, and the Middle East, across Sales & Trading, Origination & Research.
Compensation Plan Design
- Development of annual and long-term incentive funding mechanisms.
Compensation & Business Benchmarking
Benchmarked competitive pay levels for a number of international corporate banks.
Benchmarked pay levels for executive management roles for leading European wholesale banks.
Compensation Advisory/Counsel
- Advising on year-end bonus decisions in line with market practices.
Pay & Productivity Studies
Quarterly Financial Benchmarks: Provides detailed analysis of the financial performance of approximately 25 publicly owned or publicly disclosed commercial and investment banks.
Board Flash: Provides an early assessment of an organization’s compensation positioning against the competitive market covering all officer level staff, VP and above. Equities, Fixed-Income, Investment Banking, Executive Management and Non-Revenue staff. All regions are covered in this survey. Approximately 10 firms participate.
Gauge Benchmark: Provides detailed analysis and actionable results for staffing levels, grade pyramids, cost levels, structure, competitiveness, market sizing and key performance rations (payout ratios, front office to back office ratios, and cost per head). Approximately 10 firms participate.
Expense & Staffing Benchmarks Gauge provides actionable results. In an ever more challenging business environment, financial institutions must allocate resources as efficiently as possible. Gauge benchmarks your firm's performance against the competition and helps you focus on areas having the greatest potential to enhance your bottom line.
Financial institutions spend a considerable amount of time and money on budgeting and planning. GAUGE enhances the planning process by allowing participants to factor in peer trends when making strategic decisions.
Gauge provides comparable and actionable data on your competitive positioning versus your closest peers, including:
- Detailed cost by line item (compensation and non-comp costs)
- Staffing levels and grade pyramid
- Market sizing and trends
- Key performance ratios (e.g. pay out ratios, FO:BO ratios, cost per head)
Gauge takes data from the General Ledger and maps it into a standard structure to provide a real apples-to-apples comparison. Gauge has a demonstrated track record of delivering significant value to the world's leading financial institutions. Gauge takes your Cost & Headcount and compares it against your peers at granular level.
Gauge's approach includes:
- Sourced from financials
- Mapped by us to functions
- Questions on Exceptions
- Sign-off by each business
- Tailored reporting
- Draft results in 12 weeks
Output includes:
- Report for each detailed business unit and location:
- Headcount & Grade levels
- Cost by detailed line item
- Trends
- Trade count and ratios to take account of scale and complexity
- Conclusions and commentary
Gauge's reports may be used to:
- Identify and quantify variances
- Objective leverage to effect change
- Review external structural and organisational differences
- Input to decision making process
