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Our predictions for total compensation, bank by bank, for 2010

Yesterday we published alleged salary figures for various different banks this year.

Today we are looking at the likely totality of salary and bonus ie. How much each bank is likely to pay in total.

Needless to say, it will be down: on average, most banks are likely to reduce total compensation per head by anything from 10% to 30%. The biggest losers will probably be at Credit Suisse and RBS.

Compensation figures below are based on headcount at the end of the third quarter and compensation accruals for the first nine months (minus the UK bonus tax and severance pay – where broken out). We’ve assumed that each bank accrues only 15% of its annual compensation in the final quarter and that headcount at the end of the year is static on Q3.

Not all banks are listed: only those which break out investment banking pay and headcount are included. Absentee banks are likely to pay badly too. The Wall Street Journal has spoken to a Citigroup banker who says colleagues exiting compensation meetings, ‘look like they’ve been hit by a truck.’


Goldman Sachs

Forecast pay per head, full year 2010 $416k

Expected percentage change on 2009: -17%


UBS

Forecast pay per head, full year 2010 CHF364k ($377k)

Expected percentage change on 2009: +2%

(Health warning: A large proportion of UBS’s compensation is expected to go to the 427 people it’s hired at executive director level and above this year, many of whom are thought to be on guarantees. There’s also a possibility that UBS will accrue very little compensation in the fourth quarter.)


JPMorgan

Forecast pay per head, full year 2010 $347k

Expected percentage change on 2009: -8%


Credit Suisse

Forecast pay per head, full year 2010 CHF319k ($331k)

Expected percentage change on 2009: -28%


Deutsche Bank

Forecast pay per head, full year 2010 E307k ($409k)

Expected percentage change on 2009: -12%


BarCap

Forecast pay per head, full year 2010 175k ($276k)

Expected percentage change on 2009: 10%


RBS

Forecast pay per head, full year 2010 124k ($196k)

Expected percentage change on 2009: -29%

Comments (21)

Comments
  1. What about bank ICICI ?

  2. LMAO @ Raj

  3. Any thoughts on compensation for Standard Chartered’s (admittedly modest) IB franchise?

  4. Raj, that is totally different league! :)

  5. The MD gets 2 million
    The Associate gets 200k

    Average pay per head is 1,1 million…

    Stupid statistics

  6. Bank of Rajasthan is the one for you my friend!

  7. Sarah can you share the Revenue and headcount figures you used?

    also,

    “that headcount at the end of the year is static on Q3”

    Most banks will be forced to cut in Q1 2011 before bonus are declared to avoid making many people unhappy

  8. If they pay too much, Vince Cable might have to cancel his Strictly Come Dancing schedule and return for some more banker bashing!

    strictlyBANKERbashing Reply
     
  9. I am going to echo Uwe’s comment I am afraid. Admittedly a lot of good work and effort may had been gone into getting the data supporting this article. However, without any further additional information (min,max, other statistics) there is very little if any useful information we can get out of this. ft please enhance.

  10. Sarah

    Please can you stop doing this kind of useless analysis. You are much better than this useless crap.

    Please speak to Headhunters and get total package (base + bonus) for analyst 1,2,3 / Associate 1,2,3 / VP 1,2 / Executive Director 1,2,3/ MD
    for M&A, Financing Group IBD (i.e. DCM/ECM/LEvfin) , Sales, Trading , that is 12 levels for 4 areas of work with 2 numbers (base and bonus) so that is 12x4x2=96 data points.

    Please take all the relevant banks e.g. GS,mS,JPM,Citi, BAML, UBS, CS, DB, Barcap, BNPP, HSBC, RBS so 12 banks in total

    Please put all of this in a nice table and then we can discuss.

    I am just getting sick of this article which is pointless and does not provide any insights.

  11. Deutsche Bank
    Forecast pay per head, full year 2010 E307k ($310k)

    Where did you get that exchange rate from? should be USD410k yeah?

  12. @anono – you’re right, have changed that.

    Sarah, Editor, eFinancialCareers Reply
     
  13. @View – You’re right, the figures won’t do anything to predict what an individual at a particular level will get paid at a particular bank. However, they do indicate roughly how big a bank’s compensation pool is relative to the number of people who work there, relative to previous years, and relative to its peers….

    Sarah, Editor, eFinancialCareers Reply
     
  14. Sarah, good article but why do you bother when you get all these obnxious comments. It’s not an easy job to come up with fresh content day after day and inevitably not all of it will be 100% accurate or to everyone’s liking. Some of the posters (HR being a case in point) behave like rude, spoilt toddlers who spit their dummies out when they don’t get their way, lord knows how these fools manage to hold down a day job. Maybe if they are so well informed and intelligent they should post their own articles on here and then we can all snipe at them anonymously.

  15. .useless … as usual it is an average figure. when will eFc start understanding this?

  16. Ricky why don’t you go and lobotomise yourself.

  17. For those looking for other stats, consider the average figure to be approximately appropriate for a VP in IBK/DCM/ECM.

    What would be useful, Sarah, is a table on where base salaries currently sit. I hear VP’s at BarCap are at 175k – by your numbers, this would mean that there is no bonus.

  18. >>there is very little if any useful information we can get out of this.

    What’s posted above is about as good as it gets. I mean, do you really think banks maintain detailed comp figures and would make that data transparent to the public?

  19. @ Deutsche Bank
    Now the FX is right, but the ranking of the banks is not updated.

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