London’s Top Firms Pay 37% More in Bonuses, Survey SaysAmbereen Choudhury
London’s investment bankers at firms including Bank of America Corp., Deutsche Bank AG and Goldman Sachs Group Inc. get bonuses 37 percent higher than counterparts at smaller firms, according to Emolument.com.
Managing directors at large firms in the U.K. capital typically receive bonuses of 400,000 pounds ($670,000) and base salary of 275,000 pounds, Emolument.com, a compensation research firm, said in a statement. Directors are paid bonuses of about 192,000 pounds and fixed pay of 170,000 pounds, it said.
“For those who make it to top-tier institutions, it is worth aiming for the senior jobs at managing director level,” said Robert Benson, chief executive officer at Emolument.com. “Outperforming banks are particularly open to profit sharing with their managing directors.”
European regulators are preparing to outlaw bonuses that are more than twice fixed pay to prevent a repeat of the risk-taking that helped spark the 2008 global financial crisis. Banks are looking for ways to sidestep the European Union rules, which will apply to awards given in 2015 based on this year’s performance.
The survey examined the median pay of 719 bankers and traders working in areas including mergers, trading, debt and equity markets at banks such as UBS AG, JPMorgan Chase & Co. and Morgan Stanley.
Interns at the large firms receive median salaries of 45,000 pounds, while analysts get fixed pay of 48,000 pounds and a bonus of about 15,000 pounds, according to the survey.
Britain was home to 2,188 investment bankers earning more than 1 million euros ($1.4 million) in 2012, the most in the EU, while Spain had 37, according to the London-based European Banking Authority. France and Germany had 117 and 100 respectively.