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efinancialcareers |

Thought this pay report may be of use to those wondering about salaries as a junior banker in London.

https://news.efinancialcareers.com/uk-en/277526/banking-salaries-and-bonuses

According to the report, one should expect around £88k (£50k base and £38k bonus) as a first-year analyst, and around £220k (excluding perks) once you reach your third year as an associate. These salaries are lower than what one would expect in New York (and I believe Hong Kong, too), which I think is largely attributable to the fact that you get significantly more holiday time in London than in New York (or, indeed, in Hong Kong), as well as the Sterling's recent fall.

I assume the numbers will be slightly higher for those who start in boutique IBs or private equity funds as opposed to BBs.

Something interesting I found is that, at least for first-year analysts, salaries at BAML were higher last year than they were this year (I think the figure was £96k or so last year; the report has since been taken down, unfortunately - so I can't verify). Perhaps this is a signal of an upcoming wider scale decline in banking salaries in London (perhaps as a result of Brexit)? Or perhaps last year was a one-off? Other banks figures have remained fairly constant.

Note to moderators: I accidentally posted before properly formatting. Would it be possible to change the title to:
" efinancialcareers | "The truth about pay for analysts and associates in IBD" "? Many thanks.
(edited 5 years ago)
were there any lies before this "truth"?
those comp ranges are not low. they only look low because the pound was decimated when brexit was announced. comp doesn't generally instantly change when a random externality impacts a country's exchange rate to this extent - aka the actual local purchasing power hasn't changed much if at all. using historical rates, those numbers are very much on par with other finance hubs.

bonus numbers are looking much higher than normal this year it seems. street was ~£30k for a full bonus at the An1 level in 2017/2018. even more evidence that these aren't low numbers.
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Original post by Princepieman
those comp ranges are not low. they only look low because the pound was decimated when brexit was announced. comp doesn't generally instantly change when a random externality impacts a country's exchange rate to this extent - aka the actual local purchasing power hasn't changed much if at all. using historical rates, those numbers are very much on par with other finance hubs.

bonus numbers are looking much higher than normal this year it seems. street was ~£30k for a full bonus at the An1 level in 2017/2018. even more evidence that these aren't low numbers.


Apologies - should have been clearer. The numbers are, of course, not low. I only meant lower than NY and HK (at least according to the data on WSO) - which as you mention is primarily because of the pound's fall. I heard that salaries are also lowered in London compared to NY because people are allowed to have more time off for holidays (because of UK law). I might be wrong on that. Not sure.

Original post by gr8wizard10
were there any lies before this "truth"?

? I just thought people might find it useful to see true numbers based off a formal report as opposed to finding dodgy numbers on Glassdoor or relying onn what people on Student room say lol. And I think its also useful for comparing pay across banks (and noticing, for example, the significant differences in pay between European and American banks - largely, I believe, because of differences in the number of hours you have to work).
Original post by xjk1
Apologies - should have been clearer. The numbers are, of course, not low. I only meant lower than NY and HK (at least according to the data on WSO) - which as you mention is primarily because of the pound's fall. I heard that salaries are also lowered in London compared to NY because people are allowed to have more time off for holidays (because of UK law). I might be wrong on that. Not sure.


? I just thought people might find it useful to see true numbers based off a formal report as opposed to finding dodgy numbers on Glassdoor or relying onn what people on Student room say lol. And I think its also useful for comparing pay across banks (and noticing, for example, the significant differences in pay between European and American banks - largely, I believe, because of differences in the number of hours you have to work).


arkesden is a better source imo

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