How much did investment banks in London pay their vice presidents (VPs) in salaries and bonuses for 2017/2018? A new compensation survey from London-based recruitment firm Arkesden Partners suggests a remarkable degree of similarity once you hit senior VP level, but a far tighter spread below that.
As the chart below based upon Arkesden's data shows, total compensation for first year VPs in London investment banks right now ranges from £239k (UBS) to £271k at Bank of America. For second year VPs it ranges from £276k (Deutsche) to £294k (Bank of America). And for third years it goes from £307k (Barclays) to £334k (Goldman Sachs).
In other words, you can earn nearly 11% more at BofA than at UBS as a first year VP, but by the time you hit your third year the differential between the best and worst paying banks has narrowed to 900 basis points.
Most banks split VP compensation almost equally between salary and bonus. However, there are outliers. Morgan Stanley, for example, pays unusually high salaries of £170k to VPs at all levels, but makes up for this by reducing bonuses in the first and second years. Deutsche Bank always errs on the side of higher salaries and smaller bonuses and Bank of America pays its VPs steady salaries of £150k at every level, but increases bonuses more dramatically as its bankers progress.
As the final chart below shows, most London VPs should be pretty happy with their lot this year: total compensation has generally increased. Higher pay is particularly in evidence at Deutsche Bank after the restoration of bonuses. However, several banks have substantially increased pay for first year VPs (UBS, Barclays, Goldman Sachs), while BAML, Morgan Stanley and Credit Suisse have given third years double digit percentage rises. No VPs received pay cuts - or if they did, they weren't reflected in Arkesden's averages.
(Hover over charts to see figures)
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