Sajid Javid, ex-culture secretary and ex-Deutsche Banker is the UK’s new business secretary. Cue speculation about how much he earned in finance: the Evening Standard says Javid took a 98% pay hit to become an MP.
With MPs on salaries of £67k, this suggests Javid was earning around £3.4m at Deutsche, where we understand that he was a senior managing director with responsibility for global credit trading in Asia ex-Japan, based in Singapore until 2009.
Credit headhunters say this looks a little high. “Our 2006 pay survey found that structuring MDs at tier 1 houses were earning salaries of £130k with bonuses of £1.5m- £2m. If Javid moved to Singapore he would have received an additional ex-pat package of around £200k, making a total of £2.3m [$3.6m],” says the head of one credit search firm.
Another suggests Javid’s former pay would have been more diminutive, at ‘just’ $2m.
Javid isn’t the only ex-City professional with a position in David Cameron’s new cabinet. Amber Rudd, the new climate and energy change secretary, joined J.P. Morgan’s London IBD business in 1986 and later worked for finance headhunter i-Search LLP. When Rudd joined J.P. Morgan she said she was handed a bag of explicit videos by a senior trader. “It was a long time ago and I sort of laughed it off. Now you’d retire, or of course you’d sue,” she told the Huffington Post.