Discover your dream Career
For Recruiters
As more banks raise salaries, some are still holding out.

IBD analyst pay: The juniors still waiting for a raise

As summer bonuses loom into view, juniors in some investment banking divisions are hopeful. Away from M&A, it's been a difficult year in investment banking, but recruiters say juniors are still as much in demand as ever and that they need to be kept happy. For some banks, especially, keeping juniors happy will mean awarding generous bonuses. 

Among the big banks, both Citi and Deutsche Bank crop up repeatedly when young bankers are contemplating inequities in compensation. Citi's London juniors say they haven't had a salary rise and that second years only receive salaries of £65k when rival banks are paying £80k. Even third years at Citi are only on £70k.

Deutsche Bank juniors have similar complaints. First analysts at the German bank in London tell us their salaries are stuck at £59k, with second years on £64k and associate 0's on £90k (which is at least better than Citi's third years). 

At both banks, the hope is that higher analyst bonuses will compensate for the comparative salary frugality. Deutsche Bank announces its analyst bonuses in late July. Last year, analysts received 50%, 80% or 90% of salaries in bonuses depending on whether they were ranked in the bottom middle or top buckets, according to one DB associate. "The understanding is that any increase in base pay will eat into bonuses, so on the whole it's zero-sum," says one junior at the German bank.

However, even while analysts at the two banks put their hope in bonuses, it hasn't gone unnoticed that juniors elsewhere have been receiving salary hikes. Credit Suisse analysts will receive a second salary hike to $110k first years and $125k for second years from July.  Nomura has just hiked its salaries to a similar level. 

"It seems that all the banks (except for Citi and Deutsche) are aligning base salaries to other American banks," said one Citi junior. 

Click here to create a profile on eFinancialCareers. Make yourself visible to recruiters hiring for top jobs in technology and finance. 

Have a confidential story, tip, or comment you’d like to share? Contact: sbutcher@efinancialcareers.com in the first instance. Whatsapp/Signal/Telegram also available (Telegram: @SarahButcher)

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

 

author-card-avatar
AUTHORSarah Butcher Global Editor
  • Ma
    Marc Ter Stegen
    24 June 2022

    These banks are probably waiting to lose all talents before hiking salaries.

Apply for jobs

Find thousands of jobs in financial services and technology by signing up to eFinancialCareers today.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Recommended Jobs
Selby Jennings Investment Banking
Investment Banking FIG M&A Analyst 1-2 Elite Boutique
Selby Jennings Investment Banking
London, United Kingdom
Capstone Investment Advisors (UK) LLP
2023 Investment Graduate Rotation Program
Capstone Investment Advisors (UK) LLP
London, United Kingdom
Pearse Partners
Hedge Fund Equity L/S Analyst
Pearse Partners
London, United Kingdom
Metis Search
Private Funds Group Analyst
Metis Search
London, United Kingdom
ParagonAlpha
Quantitative Macro Analyst
ParagonAlpha
London, United Kingdom