Goldman Sachs Group Inc. bankers got the biggest bonuses in London this year with an average payout of 194,000 pounds ($299,000), 24,000 pounds more than second-ranking Morgan Stanley, according to Emolument.com.
Bank of America Corp. ranked third among the 15 investment banks, paying mid-level bankers, ranking below managing directors, an average bonus of 166,000 pounds, the salary benchmarking site said in a statement on Wednesday. Credit Suisse Group SA’s 135,000-pound average bonus made it the most generous European bank in sixth place, while ING Groep NV and Societe Generale SA ranked last, paying 91,000 pounds.
London’s dealmakers have seen their bonuses squeezed after European Union lawmakers capped variable pay at twice salary, adopting the world’s toughest bonus rules in a bid to tackle a gambling culture blamed for contributing to the 2008 financial crisis. Britain was home to 2,188 investment bankers earning more than 1 million euros ($1.1 million) in 2012, the most in the EU, according to the most recent data from the European Banking Authority.
“We expect to see base salaries shoot up in order to circumvent bonus cap regulations, especially at director and managing-director level where employees expect to see their total compensation increase substantially from previous titles,” Alice Leguay, co-founder and chief operating officer at Emolument, said in the statement.
Although JPMorgan Chase & Co. ranked fourth in awarding bonuses, the U.S. bank is the most generous when it comes to overall compensation including salary, Emolument said. The benchmarking firm surveyed 189 front-office directors working in London’s investment banks, according to the statement.
“In most cases, banks that give the biggest bonuses are also the ones offering best salaries to their bankers,” Emolument said in the statement.
Morgan Stanley bankers said they’re happiest with their bonuses of any firm in the city, while those at BNP Paribas SA considered themselves the most underpaid, according to a separate Emolument survey earlier this month.
The following is a table of bonuses in 2015:
================================================================ Bank Bonus ================================================================ Goldman Sachs GBP194,000 Morgan Stanley GBP170,000 Bank of America Merrill Lynch GBP166,000 JPMorgan GBP162,000 Citigroup GBP143,000 Credit Suisse GBP135,000 Deutsche Bank GBP121,000 Nomura GBP119,000 HSBC GBP116,000 UBS GBP115,000 BNP Paribas GBP113,000 Barclays GBP103,000 UniCredit GBP98,000 ING GBP91,000 Societe Generale GBP91,000 ================================================================