Where should you work in the City of London if you want to receive a large bonus? The answer is sadly predictable – Goldman Sachs.
Goldman paid on average £24k more in bonuses than its nearest investment banking rival, according to analysis of data from 179 director-level bankers by pay benchmarking website Emolument.com. The average payment was £194k, it suggests, compared to £170k at Morgan Stanley.
But Goldman still lags J.P. Morgan when it comes to total compensation. J.P. Morgan paid its directors more overall, suggests Emolument without providing additional figures.
However, figures released in October last year showed that J.P. Morgan paid its directors £462k in total compensation. What’s more, publicly released figures earlier this year put Goldman at the top of the pay table and suggested that Morgan Stanley was the least generous of all investment banks.
Bonuses are becoming a less important part of overall compensation in London anyway. The EU bonus cap has forced most banks to increase salaries and introduce role-based allowances – which were clamped down on by the European Banking Authority late last year – in order to compete for talent.
But U.S. investment banks make up the top five, showing that they’re still paying more for performance than their European counterparts. French and British banks pay the least.