Who got paid down in the most recent bonus round? It wasn’t the associates. The latest investment banking division (IBD) salary and bonus review from London recruitment firm Dartmouth Partners suggests pay for associates at all levels is marginally up on last year following recent bonuses. Analysts haven’t done too badly either. It’s only at senior VP level that significant cuts start to bite.
“Analysts and associates have been largely protected,” says Logan Naidu, Dartmouth Partners’ CEO. “The higher up the chain you go, the greater chance of disappointment. VPs have been largely frustrated. Directors and MDs more so.”
Dartmouth’s new survey suggests you can now expect to earn an average of £72k ($90k) in total compensation (salary AND bonus) in your first year in M&A or capital markets at a major bank in the City of London. This rises to £202k seven years’ later, as per the chart below.
Some banks, however, pay more than others. And the highest payers aren’t necessarily the banks you’d expect. We’ve broken out salaries and bonuses on a bank-by-bank basis in the table below. The most notable features are as follows:
- J.P. Morgan and Bank of America consistently ranks among the highest payers for analysts.
- UBS consistently ranks among the highest payers for associates.
- At associate 3 level, the highest paying bank (UBS) pays £10k more than the lowest paying bank (BAML)
- Citigroup’s weirdly generous to its associate Os (recently promoted analysts).
- Despite its reputation for low pay, Morgan Stanley doesn’t pay badly when you’re a junior in IBD.