What do you think the next base pay jump will be?
Afaik/remember 2020/2021 was the most recent jump when banks went from £45/55k to £65/70k for grads/juniors.
Prior to that was somewhere 2015 or 16.
When do you think the next jump will be and to what level?
I reckon it’s coming close, maybe 2029 or 2030 and my prediction is £95/100k for grads.
Would be cool to hear from MD/SMDs and if they have any insights.
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lmao there was an identical thread like 6 months ago. There is not going to be another payraise till 2029/30 at the least, you are right in that.
I-bankers have zero bargaining power right now in Europe. There is too much talent and not enough seats.
is that what happened in 20/21 and before that? not enough talend and way too many seats?
though both were linked to super amazing years for IBs and talent retention (loss of guys to PE)?
what do you think it will go up to?
My Aso said when he joined as an SA it was 45 and jumped to 70 when he got a return offer, so I'm thinking it will be a similar rise.
Can't speak for 20/21 wasn't around then but there is two main factors generally
1) CoL. Can an Analyst live a decent life on 70k base in London
2) How much bargaining power do analysts have / can you retain them
Was an analyst in 20/21. We could not hire people fast enough, was at a top group at BB and we were hiring anyone with a pulse... accountants, lowest of LMM PE analysts, corporate banking rotational analysts. We had no talent and the people who were filling those seats didn't have relevant experience and took forever to ramp up, if they ever did. My hours were regularly 8am-4am and I was doing it all from home in complete isolation which sucked.
Seniors were forced to decline live deals because of how understaffed we were. Analysts were frequently quitting with nothing lined up and still landed at PE or other top roles after a few months off, which led to more people quitting... Definitely a black swan event for IB overall.
There was also the "Goldman 13" where the TMT juniors made a public presentation about how bad their working hours and staffing was. All of the BBs were doing CEO calls with the IB analysts telling them all the things they're trying to do to fix it, it was insane.
Rant aside - I don't think salaries are going up anytime soon. The market is still very much favoring the banks, until we get another situation like covid where they are having trouble hiring, they don't need to raise salary to attract people.
Lol please quote us in freedom dollars brother. You shouldn’t have taxed us so much if u wanted us to use ur retarded currency.
Mmkay gooner
Guy working in finance can’t convert currencies
Fries. Bag.
Alright alright
How many burgers can OP buy with that salary? Use a unit we can understand
LMFAO
Could be worse... in consulting and my firm lowered base salary by 15-20% once the economy worsen a few years ago. Their logic was the employer had the power to low-ball applicants.... like me.
That’s rough buddy… :( sorry to hear
Yuropoors working 100hrs a week just to make as much as a Panda Express manager
i was going to comment "prime ragebait" but this is just facts sadly this is genuinely a hilarious comparison. You know who ever MS'd this went to their midnight comment session with a frown on their face
Idk man, currently an A2 at a top BB in London and pulled GBP120k this year. Which amounts to USD165k.
Think the USD12k post tax difference with my American colleagues is pretty marginal at this point, especially given the better hours & 2 months of PTO. But not expecting you smooth brain mouth breather to understand.
Anyway, got to go catch a USD50 plane to Greece for the weekend !
Buc-ee's band ranges are even better than this. General Managers can make 150-225K+ with a 6% 401K match. Their Food Service Managers make more than me.
Investment banking in London has honestly become a complete joke. I’m working at a major EU balance sheet bank in Frankfurt and constantly get inquiries from EBs/BBs in London. To make the move, I’d have to take at least a 20% pay cut, deal with way higher living costs, and on top of that, work even more hours than I currently do. Honestly, it just doesn’t make sense to work in IB in London.
I kinda suppose that’s where my question is coming from?
If EU bankers are getting inquiries from LON based banks to make the switch, makes me think that there is a shortage of talent in the UK.
With a sample size of ~10 EU bankers don’t really want to make a switch to London because of the factors you mention.
The above makes me think there must be a pay bump looming around the corner (next 2-3 years) to attract and, more importantly, retain talent.
We’ll see how the banking industry unfolds in the coming years.
I think London has a structural problem, and the recruitment practices are making it worse. Most juniors actively look for a private equity exit even before they've officially started their analyst tenure at the banks. As a result, banks try to fill these positions with candidates from EU countries, but nowadays they no longer want to move to London either.
Entry-level positions as Analyst 1 can always be filled with eager candidates somehow. That's why there is little movement in salaries for these roles. However, positions from Senior Analyst onwards are usually filled at high costs through headhunters.
y'all gettin paid fish and chips over there omg 😹😹
Honestly, the situation in Frankfurt is significantly better. First-year analysts at MM firms here earn around 120k EUR (144k USD) (before taxes, health insurance, and pension contributions), and you can already find a spacious apartment in the best city center location for under 2k EUR rent per month.
Base salaries aren't going up any time soon...at BEST 2030. Funny because you will still feel kinda poor in today's world. Crazy to look back....I was an analyst and rented a $2k studio 3rd floor walk up in the UES on my $70k a year Analyst 1 salary in 2014 and felt pretty good (right before big tech really took off).
For what it's worth I'm senior in a busy team in London. Not senior enough to make decisions on salaries or headcount, but senior enough to have an influence and be in the discussion.
We'll have the same allocation of headcount this year, but in light of AI we're actually having a smaller grad class next year (2027). We're busy - budget is going up YoY. But there's a view (not necessarily mine) we can do more with fewer juniors.
I graduated into post-financial crisis banking landscape, but I honestly have sympathy for those recruiting into the current grad market.
So yeah to summarise I don't see salaries going anywhere anytime soon
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