A Global View of Credit Salaries and Bonuses

Compensation across the credit industry is shifting as private credit expands, regulation tightens and AI reshapes productivity expectations. While base salaries remain stable in many areas, bonuses and skills premiums are becoming the real differentiators.

 ‘A Guide to Careers in Credit’ includes updated salary benchmarks for core credit roles across leading financial centers. This article replaces the 2024 version with new insights from the latest careers guide. Download the updated guide to view the full details.

Here we highlight some of the major trends currently influencing pay.

Base salaries are rising slowly, but exceptions remain

• Across credit functions, most firms report modest increases in base pay, with many predicting rises below 5%.
• Credit risk is seeing slightly stronger upward pressure, with banks raising bases to compete with private credit and data/quant roles.
• Private credit and hedge‑fund linked roles continue to command higher bases at senior levels due to intense competition for experienced underwriters, portfolio managers and restructuring talent.

Bonuses are becoming differentiators

• In traditional and private credit analysis, bonuses typically range from 15–100% depending on seniority, with the steepest jumps at VP and MD levels.
• Trading and sales compensation remains the most volatile: traders often earn 20–30% of revenue or 50–100% of P&L, with e‑trading and quant skills pushing payouts higher.

Skills premiums are expanding

• Firms are paying uplifts for candidates with Python/SQL, AI literacy, ML‑driven risk expertise and dashboarding capability. These skills materially affect comp at both junior and senior levels.
• ESG‑linked credit expertise also carries a premium, as climate and sustainability risks become embedded in credit decisions.

Private credit leads on compensation

Compensation in private credit remains structurally higher. Alongside scarcity in specific private credit expertise, this is driven by deal complexity, concentrated ownership, higher spreads and fundraising momentum.

Value of regulatory and risk roles

With Basel III Endgame and global regulatory scrutiny, risk and stress‑testing roles are seeing compensation differentiation, particularly for professionals who can navigate model governance, early‑warning frameworks and regulatory reporting.

Regional differences: Pay divergence across global hubs

• New York — Highest pay globally
  US roles carry the highest bases and bonuses across almost every job family, driven by larger fee pools, deeper private credit markets and a culture of performance‑linked pay.
• London — Competitive but compressed bands
  London offers strong packages but with tighter bonus ranges due to regulatory constraints and greater talent supply.
• Frankfurt — Lower bases, moderate bonuses
  Germany’s more regulated, bank‑centric market produces lower average compensation and limited upside compared with London or New York.
• Singapore — Lower base, high bonus potential
  Singapore compensation is competitive, with notably high bonus potential. Lower taxes in Singapore make it an attractive destination despite comparatively lower salaries.

Looking for previous insights? Read the 2024 article here.