If the UK leaves the EU, Deutsche Bank has raised the spectre of relocating large chunks of its 9,000-strong London operation to Frankfurt. Juniors in London could suffer huge pay cuts as a result.
Last month, we reported that Deutsche Bank hiked salaries for its juniors in London by 30%. In Frankfurt, much to the frustration of all concerned, our German editor reports that salaries remain low.
Even more awkward is that April’s big pay rises in London were kept quiet from Deutsche’s juniors in Frankfurt. “It was not communicated or explained. This has lead to great dissatisfaction,” says Sabrina Tamm a headhunter at Financial Talents in Frankfurt. “It wasn’t long ago that Frankfurt salaries were similar to London.”
Following the pay rise, third year associates at Deutsche in London are earning salaries of £130k ($200k), up from £95k previously. By comparison, Tamm says associates in Frankfurt can expect salaries of €100-120k (£72-86k) and that they received a maximum pay increase of €5k.
Clearly, Deutsche’s young London bankers need to hope that Britain votes to stay in the EU and their relocation doesn’t go ahead.