Savills this week poached the five-strong commercial auctions team of Nelson Bakewell, ending a search that has lasted more than two years.
The team, headed by James Cannon, resigned en masse on Wednesday. Hugh Morgan, Simon Parker, Barry Coltrini and Darac O’Neil are to move to Savills with Cannon.
A source close to Cannon said: “James always hankered to work on a bigger stage. He sees moving to Savills as like transferring from Charlton to Chelsea.”
The prospect of high earnings driven from Savills’ greater investment business has attracted Cannon and his team. They will be part of the investment department headed by Simon Hope.
Auction market volumes doubled from around £170m in 2000 to £340m last year. There have been well-founded reports of a senior auctioneer being offered a guaranteed £300,000 pa for three years to defect.
Typical earnings are around half that: a team head will be on a basic of £90,000 to £100,000 a year, while juniors get £30,000-£40,000. Bonuses can add between 50% and 100%.
The bonus schemes at Savills and Nelson Bakewell are similar. At NB, team salaries are totalled and multiplied by 2.25, with the team receiving 25% of income over that level. At Savills, the earnings multiplier is 3.5, but staff then get 45% of additional revenues.
In October, CBRE tried to poach Cushman & Wakefield Healey & Baker’s auctioneers John Townsend, Martin Christopher and David Margolis.
Savills has a residential auctions business, headed by Chris Coleman-Smith, but has been eager to capitalise on the surging interest of private investors in commercial auctions.
Eighteen months ago it came close to luring Jones Lang LaSalle’s lucrative auctions team, headed by Richard Auterac and Peter Cunliffe.
JLL’s former global president, Chris Peacock, and managing director for England Alistair Hughes were forced to intervene to keep the team.
Nelson Bakewell managing director Mike Hatt said: “It is sad to see anyone leave the company. We are thinking hard about our future plans.”
References: EGi News 17/01/05
