The average UK financial services bonus last year was £13.4k. Sounds good? Not if you’re a 25 year-old working in M&A or capital markets for a major bank in London. In this case, you’ll already be expecting a bonus of £30k+ ($40k+).
So says the new salary and bonus survey from London recruitment firm Dartmouth Partners. If Dartmouth’s right, then during the first ten years of a career in an investment banking division in London, your total compensation (salary AND bonus) will increase on a trajectory a little bit like this:
In other words, in IBD at a major bank, you can probably expect to earn a total of £66k in your first year and £317k 10 years later. – Maybe before, if banks (like Goldman) subject you to the new accelerated promotions.
We’ve broken out what 2016 analyst and associate pay in IBD looks like on a bank-by-bank basis below. Notable features are as follows:
- Bank of America pays A LOT when you’re starting out.
- UBS pays A LOT for a European bank. It also defers a lot less of its bonuses than the rest. – While most banks defer anything from 15% (Goldman Sachs) to 25% of bonuses at Associate 2 level and above, UBS defers nothing until you hit Associate 3. And then UBS deferrals are 5% or less.
- At associate level, Goldman Sachs pays more than J.P. Morgan.
- An associate three at Goldman Sachs is paid £27k more than an associate three at Barclays.
Pay for analysts and associates at BAML:
Source: Dartmouth Partners
Pay for analysts and associates at Citigroup:
Source: Dartmouth Partners
Pay for analysts and associates at Barclays:
Source: Dartmouth Partners
Pay for analysts and associates at Credit Suisse:
Source: Dartmouth Partners
Pay for analysts and associates at Deutsche Bank:
Source: Dartmouth Partners
Pay for analysts and associates at J.P. Morgan:
Source: Dartmouth Partners
Pay for analysts and associates at Morgan Stanley:
Source: Dartmouth Partners
Pay for analysts and associates at UBS:
Source: Dartmouth Partners
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Contact:SButcher@eFinancialCareers.com
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