Associate salaries have been hiked over the past year – by an average of 20% – but even among junior employees most banks in London have cut bonuses, meaning overall compensation is up by good, but not stellar, amounts on 2014.
The exception among the big investment banks in the City is UBS, which appears to have kept associate pay largely flat, or even decreased it, thanks to larger cuts to average bonuses than its peers in London.
Headhunters Arkesden have compiled a new compensation survey, based on the individuals it places, on what the large investment banks paid their associates and VPs this year.
Generally speaking, Goldman Sachs, J.P. Morgan and Morgan Stanley are the three biggest payers across the ranks, but there are some surprises. Credit Suisse, for example, paid its associate 2 employees more than any other bank, the figures suggest, thanks to it having the biggest bonuses in the City at that level. It’s also generally among the most generous investment banks.
Barclays, meanwhile, is consistently among the lower paying investment banks at both associate and VP level and has been relatively parsimonious when it comes to increasing pay for its junior and mid ranks. Barclays is cutting 1,200 jobs in its investment bank, but given that these have predominantly hit the senior ranks, it’s policy on junior pay is surprising.
Deutsche Bank’s CEO, John Cryan, has been vocal about the need to cut back bonuses and this is reflected in its associate and VP pay. Deutsche is mid-ranking among its peers for overall pay, but often among the least generous for bonuses.