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Analyst bonuses down, but analyst salaries up

After weeks of waiting patiently, we can now offer some insights into the state of the 2009 analyst bonus in IBD.

UBS and Citigroup have both announced, and the numbers aren’t particularly pretty. However, it’s less painful than it might be because salaries have increased to compensate.

According to persons specialized in the recruitment of analysts, bonus numbers at both banks are roughly similar as follows –

· Analyst 1: 10-20k

· Analyst 2: 20-30k

· Analyst 3: 30-45k

Needless to say, this doesn’t compare particularly favourably to 2008, when we understood that analyst bonuses at the likes of Goldman and Morgan Stanley were:

· Analyst 1: 16-40k

· Analyst 2: 20-45k

· Analyst 3: 40-60k

Equally needless to say, this year’s bonuses look even smaller compared to 2007’s, when we understood that they averaged:

· Analyst 1: 48k

· Analyst 2: 63k

· Analyst 3: 77k

All this would be enough to make an overworked 23 year old weep, were it not for the fact that salaries have been increased to (partially) compensate.

We’re hearing conflicting rumours on salary increases, however. On one hand, we understand that salaries for second year analysts are up a generous 10-15k. On the other, we hear everyone’s simply been shunted into the salary band above, equating to an average 5k increase. Let us know if you can elaborate.

Comments (18)

  1. What’s the trend in markets? We never hear about markets!

  2. Ditto the above. Always hear about IBD…never about markets – would be very interesting to hear!

  3. I don’t believe these numbers for a second. There’s no way at all that between 1st, 2nd and 3rd year, IBD pay only goes up by 10k or so – in Markets your bonus literally DOUBLES over the first 3 years – 50, 100, almost 200 is entirely realistic.

    3rd year analyst on 77k bonus… just pitiful.

    22yo, 6 figure bonus Reply
  4. I’m just starting in markets but I can’t help but think it can only be the very top performers, on best desks, at the very top BBs (or liars) who are getting those kind of bonuses in markets.

    I’m sure they exist but I’m more interested in what is TYPICAL?

  5. 22yo, 6 figure bonus – are those figures (50, 100, 200) for FO market roles in general or specific roles within FO?

  6. any idea on level for vp’s?

  7. And please keep in mind how many fewer investment bankers there are about now as compared to then, these figures are a small pool split between even fewer people.

  8. 22yo…

    you’re talking utter, utter rubbish. just who on earth do you think you are?!

    maybe, MAYBE you could be talking USD numbers, but even then i’m sceptical.

  9. 22yo, 6 figure bonus – such a clown. How would you know? If you ask people who work in IBD teams then you will realise that those numbers look perfectly realistic. At my ex-shop bases went from 36k to 48k from Analyst 1 to Analyst 3 – with a lower bonus they have seen a pretty small rise of 1-2k in base. Bonuses actually not decided yet.

  10. vp

    60-90 base plus 100-300 per cent bonus []

    prob could get more at top of market at top shop on profitable desk

  11. MY BARCLAYS CAPITAL BONUS : 3000. Performance evaluation, top of the range (A).

    barcap shagged Reply
  12. jjj,

    As a 1st year analyst, I got over 50k.

    As a 2nd year analyst, in this horrific market, I got over 100k. About half of my grad class for sales/trading got over 100k. Pretty much cross product – people from cash equity to complex derivatives got over 100k if they deserved it.

    After 2nd year analyst you become 1st year associate, this year I’m easily looking at close to 200k.

    Definitely not lying. I know my bank is one of the best bonus payers, the people I hang out with are generally cream of the crop, but no lies here!

    22yo, 6 figure bonus Reply
  13. I’m laughing a lot at you IBD people who think 22yo 6fig’s numbers are unrealistic. They could not be more realistic. 6 figure bonus after 2nd year analyst (ie 2.5yrs on the desk normally) it very, very realistic at the top banks. Very minimum 70-80k bonus after 2nd year if you’re OK, easy 6 figures if you’re good.

  14. I’m an equity index trader.

    In my first year my bonus was 48k – average to below average.
    In my second year it was 98k – they said it would have been enormously higher if not for the credit crunch.
    In my thirs year (ie 1st year associate) it was about 170k.

    So I don’t see what’s wrong with 22yo’s numbers, seems about right.

  15. You traders demonstrate clearly how you cannot grasp the simplest of concepts. The article is about IBD. I, along with some people on here, pointed out that the figures given by 22yo were NOT realistic for IBD – his/her initial point was that the figures in the article were too low. They are NOT too low for analysts in IBD (M&A / Coverage).

    It appears it may be a little too much to expect traders to hold together a string of concepts in one thought process….

  16. I ll give you my comp from the good old days
    I was class of 2004 at ECM
    1st Year (2004-2005): Salary 35,000 bonus 27,500
    2nd Year (2005-2006): Salary 42,000 bonus 35,000
    3rd Year (2006-20007): Salary 51,000 bonus 60,000

    and i was at the bottom of the good guys.

  17. sorry guys, im not up to speed with u. Whats IBD stand for? which bank does 22 yo six figures work for? Does everyone working in an investment bank regardless of which department there in (e.g Investment banking, asset management or trading) get paid loads of money. if so how much? do traders get more than bankers? what are all the levels you have, to move up in investment banking and stuff like that. i no firstly its analyst 1 then 2. what is all the others?
    One of you guys can help me out im sure, im helpless here, not keeping up with you.

  18. You never hear about markets becuase compensation in markets isn’t as standardised as in IBD.

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