Why is IB in London paying so much less than IB in New York or Frankfurt?
According to the Arkesden report BB IB in London pays around £60-65k base. US BB IB pays $100k = £80k base. So roughly £15-20k more. IB in Frankfurt pays €80-90k = £72k base. Given that Bonus % is roughly the same across regions and working hours are not substantially worse in one region over the other.
Why is pay so bad in London? Even after accounting for cost of living, compensation is way worse than in New York or Frankfurt.
Frankfurt is so shit they have to pay people more to live there
Frankfurt is actually pretty decent, and you will get tons of experience being there.
Sure, you won't find the nightlife like in London or NYC, but why do you care if you pretty much live in the office? Besides that, you make a good amount of money and the cost of living is quite cheap. Would choose Frankfurt any day for my analyst years, maybe London or NYC if I want to make a long-term career in banking.
Said the one who applied for London but only got in Frankfurt
Continental Europe salaries were set to align with London, at a time when the pound was strong. The fall of the pound from 1.7 Eur back in the 2000s to the actual 1.17 has obviously made London fall behind the rest of the continent (especially in a CoL basis).
However, when the average graduate is pulling £30k a year, banks have a strong argument not to increase it.
Are base salaries for Europeans really at 80,000 euros now?
Depends a lot bank to bank but a range would be 55-90 (french bank vs EB for instance)
US BBs would pay 70-90, whereas European BBs would be closer to 60-80
In Zurich BBs pay more than CHF100k base.In FFM BBs and EBs pay between €82.5-90k base.Do not know how it looks in Paris.
Because the English are poor.
I have worked and lived in multiple locations before and I am based in NYC and London atm. When I was in FfM and NYC, the BB I was at looked at the individual situation more, ie when a colleague rotated to another location they analyzed costs, efforts, and came up with a reasonable number. Eventually that number was lower in some locations, but not unfair.
It also depends on whether you are an existing employee, part of a rotation program or FLDP, an individual/external applicant/professional hire, and what the local employment market is like. The market is ever changing for almost any industry.
At the end of they day the jobs and salaries are advertised for the local market. It is extremely unlikely that one and the same applicant will apply at a BB for the exact same job in three different countries. How would that work? How many applicants have the legal right to live and work in the US, the UK and Germany? Among all the people I know, it would be just me. The question is a bit like asking why a BMW 3 series has a different price in NYC compared to Frankfurt am Main - how would this matter to a local buyer? The globalized world we live in has different salaries, prices, CoL and cultures in each country.
If a person truly has the ability to live and work in so many locations, they normally have a different view on this topic anyway. There is a reason why they can move around and comp alone is not the reason. You don't just pack up and move to another country because they pay a little bit more.
In my personal experience from interviewing in London, entry level or less senior jobs have always been on the lower end. There are typically more applicants per role, competition is high. The UK churns out many degree qualified candidates each year and it is not always guaranteed that a degree will lead to a career. Employers can get away with a lower salary despite CoL. There is also a lot more immigration to the UK/London than Frankfurt would ever have, it is a common theme for citizens of the Commonwealth to study in London and then settle down there. I have never heard anyone from New Zealand or South Africa say that Frankfurt is their life goal....
And, to give another view on comp - London salaries are significantly higher than in London once a certain level of seniority is achieved. When I applied for a director level banking job a while ago the London salary was 85% higher than a comparable job in Germany. So it may pay off being in different locations once a candidate is more senior.
Brit here. So overall the salaries in the UK are lower than our American counterparts across the board, this isn't dependent on sector or on location, they just don't compare in any form. This could be due to our lower cost of living, varied property pricing, historic class system or the fact our tax system is inept to accommodate good salaries, but either way it's a widespread issue. Breaking away from our Financial Sector (but fyi in IB I only took home £60k base so relate), let's look at the salary of a school administrator based on national averages in the United States and the United Kingdom:
In the US that Admin'er is looking at $35,000 or £27, 952.
In the UK that same Admin'er would earn roughly £19,000 or $23,792.
It just sucks here, simple 'as.
Bro l live in Italy😭😭
Big 4 pays 900€ per month… just to say
Nah I'd just straight up move bro
big 4 audit?
Can confirm - interned in Transaction Advisory for a Big 4 in Rome Summer 2019 - €900/month wage. My Sr. Analyst was on around €38k all in inc. bonus...
Big pay divide since post-GFC. Heard comp in London was very similar to NYC back before GFC. I think HK was below NYC comp pre-GFC and still is.
Edit: Appears I was likely wrong about HK.
Nope it isn’t, HK gets paid the same with a 12-15% tax rate
HK has same base pre-tax currently (~110k USD), with a much lower tax rate
From what I gather there is literally just more money to be made for banks in the US. They can afford to pay employees more because they make more.
Didn't see this comment but that was my assumption. It's the largest global economy with masses of $B deals done each year. There's simply more in fees to be generated in NYC than any other place on earth.
Huh? It's not just IB, everything pays less in UK/Europe(except Switzerland).
Minima aliquid eos enim nemo. Sapiente quia eum minus voluptas quia beatae voluptatem. Quasi sunt sapiente similique commodi. Voluptatem odit aliquid aut qui impedit. Ut est similique porro.
Itaque voluptates provident sint cum qui officia voluptas saepe. Explicabo libero adipisci et. Ipsum asperiores consequatur vel quidem in voluptatem. Molestiae rem asperiores dignissimos tempore necessitatibus eligendi porro. Laborum asperiores quia et veritatis quis. Expedita similique expedita repudiandae cum. Velit fugiat cum sit voluptas.
Dicta aliquam natus beatae repellat aliquid minima. Quo alias a dolor aut aspernatur et error.
Dicta rerum incidunt nulla qui. Cumque et voluptatum est id. Dicta illo aspernatur illo omnis pariatur deserunt est cum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Omnis aut ut quaerat sint quia sint sed enim. Et odio tenetur explicabo eius sunt officia consectetur.