Deutsche hikes junior wages, Yuropoors elated, Burgers coping

Deutsche Bank hikes junior banker pay again to keep pace with rivals

Deutsche Bank is set to raise starting salaries for its junior bankers to $110,000, bringing it in line with bulge bracket rivals that have all hiked pay at least twice over the past year.

The German lender will roll out pay rises for analysts in October, according to people familiar with the matter. First year salaries are set to increase from $100,000 to $110,000 and second years' from $105,000 to $125,000. The rise applies to staff within Deutsche's corporate finance unit, but not its markets business.

Deutsche’s move makes it the last large investment bank to raise analyst salaries for a second time in the past 12 months. Banks have hiked entry level pay by around 30% over the period, with starting salaries jumping  from $85,000 in 2021.

Deutsche lifted salaries for analysts in the US by $15,000 last July and by $25,000 for first year associates, with equivalent rises rolled out globally.

Deutsche Bank also unveiled analyst bonuses on 4 August, with employees telling Financial News that the bank paid out 60-100% of salaries this year, even as some rivals cut back on variable pay.

A Deutsche Bank spokesperson declined to comment.

Banks have been responding to an exodus of junior staff during an unprecedented period for dealmaking in which fees hit a record $130bn. A leaked presentation by a group of Goldman Sachs analysts in March last year highlighted brutal 100-hour weeks that respondents said had dented their physical and mental well-being.

Both Wall Street and European banks have raised salaries for a second time in 2022 to keep pace with Goldman Sachs, which was the last to roll out a pay increase last year but went above its rivals.

Credit Suisse and Nomura were among the last banks to increase entry level pay for analysts to $110,000 in July. Citigroup, JPMorgan, Morgan Stanley and UBS all announced a second round of salary increases for juniors earlier this year. Wells Fargo also unveiled a fresh pay rise for analysts globally in June, covering all major business lines in its corporate and investment bank.

https://www.fnlondon.com/articles/deutsche-bank-junior-banker-pay-rise-110k-20220818