Fresh from raising some London VP salaries by up to 40% to around £140k ($202k), headhunters in London say Deutsche is now preparing to increase salaries for its associate-level staff too.
The German bank is said to be increasing associate salaries by 10-15% in its markets business, taking them up to around £110k to £115k for third years and putting them at the top end of the market as it stands.
“Most banks had capped their third associate salaries at £100k,” says one headhunter, speaking off the record. “You had outliers on £110k at Goldman. This takes things to another level.”
We reported last year that Deutsche had increased some associate salaries to £130k. However, headhunters say this increase wasn’t across the board and mostly applied to the investment banking (IBD) division instead of salespeople and traders.
Deutsche declined to comment. The German bank’s salary increases were flagged by CEO John Cryan in January. Cryan said Deutsche would be hiking salaries and cutting bonuses as a result of the European Union’s policy of capping bonuses at 200% of salary. Overall compensation at the bank is expected to remain the same.
Headhunters said other banks are likely to follow Deutsche’s example in the coming weeks. “It’s a pack mentality. Where one banks leads, others will follow,” said the head of one search boutique. At the senior end, banks are said to be phasing out role-related allowances after being sanctioned by the European Banking Authority, with the result that salaries must rise to compensate.