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How long before Goldman and JP Morgan increase salaries too?

To our knowledge, four major banks have now increased salaries: UBS, BofA/Merrill Lynch, Morgan Stanley, and Citigroup.

That leaves several banks that haven’t, most notably Goldman Sachs, JPMorgan, Deutsche Bank and Credit Suisse. Rumour has it that Credit Suisse already has salary hikes in the pipeline. Goldman, Deutsche and JPMorgan are silent on the subject.

Do these banks need to raise salaries too? One level, no: all have come through the financial crisis in comparatively good shape; JPMorgan and Goldman have repaid TARP cash, and Deutsche was unconstrained to begin with; all are places where the average banker wants to work.

However, they may yet find the allure of increasing salaries impossible to resist.

Headhunters point out that once managing directors become accustomed to salaries of $400-500k at UBS or Merrill Lynch, they won’t want to trade them for salaries of $250-$300k at Goldman or Deutsche. Bonuses might be higher, but salaries are critical for mortgage borrowing and pensions.

This will make it difficult for banks that haven’t hiked salaries to hire, at all levels of seniority.

Alan Johnson, managing director of pay consultants Johnson Associates says most banks can be expected to increase salaries, but that it won’t happen in a uniform fashion. “All banks are in different circumstances,” he says.

Comments (8)

  1. Are UBS, BoF, MS & Citi the new Goldman Sachs

    Goldman_wannabe Reply
  2. What does an MD get at one of these non top places, say Nomura? And, for that matter what does a Director get? Any ideas Sarah? Still in 125k league for a director, 150k for a MD?

  3. @Jonah – it mentions it in the article. MD salaries have apparently risen to around $450k (271k) at UBS and Merrill,

    Sarah, Editor, eFinancialCareers Reply
  4. is easy for UBS to increase salaries when they only have 15 MDs left!!

  5. 15 left? SRSLY?

  6. UBS & CS MD salaries in (were) Switzerland are in order of >200K CHF (100K GBP).

    visiting swissie Reply
  7. Hi Sarah,

    UBS/BOA/Citi/MS…have any of the little people (sub MD) at these banks received salary increases, or is this limited to seniors only?

  8. All UBS investment bankers from the Associate level have been increased from 30% to 50%+. And analysts bonuses were more than decent on Monday.

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