Why London?
I’m originally from Germany but started my career in MM IB in London. When I first joined the industry in 2020, salaries were honestly terrible – 50k GBP base across many banks and consultancies, with some even paying less. While banks have significantly raised salaries in recent years, the compensation still falls short compared to what you can earn in many other Western European countries, even in corporate roles. A buddy of mine, for example, is making 85k GBP in a corporate job after just two years of experience, working 9 to 5 in a low-cost-of-living city in Cont Europe with a population of around 100k. Assoc IB pay in London is like 90k base?
There’s no doubt that London offers world-class nightlife and social opportunities, but the cost of living was brutal. And once you cross the 100k GBP mark, taxes are now almost on par with Germany, making the financial upside even less attractive.
Of course, I know about the people in MF PE, HFs, and quant roles who are making serious money. But realistically, from my analyst class (arguably MM IB, so not the absolute top tier), most ended up in fairly standard high-finance roles – think Research, Corporate Finance, CorpDev or random PE. A few transitioned to BB/EB but get killed on WLB and a few others to startup finance roles, which can be interesting but are typically not the high-paying.
Even many I know with strong CVs and experience at tier 1 firms often end up in random finance roles after initial experience at Tier 1 Buyside gigs (BB IB -> MF/UMM PE -> CorpDev). Sure some of then are eventually going to make partner but for most people, optimizing for “elite jobs” in London seems like a risky bet. Unless you make it to the pinnacle roles, your lifestyle will likely be worse compared to cities like Amsterdam, Frankfurt, Munich, or Zurich – especially when it comes to things like housing or overall quality of life.
It's debatable but even post-Brexit London still is a premier financial hub, even if there's well-reported stories of senior JPM/GS teams moving base to Paris/Europe etc. IMO you probs need to earn minimum 60-70k to have a comfortable life in LDN. However the city is on the decline, soaring rents, skyrocketing knife crime (the Mayor of London received a Knighthood despite 8 years of chronic failure), more pollution, unrest and regular crime on the streets etc. Wouldn't recommend if people from European finance want to come and settle down here long-term, perhaps only for 2-3 years max.
60-70k is not enough to have a comfortable lifestyle in London. Or we have different definitio s of comfortable
Didn't include it, my bad, I'd say for a young graduate (21-23 yo in London)
No it's like 100-110 for Asso 1.
Your friend sounds like an anomaly though tbh? I kinda refuse to believe every European in a random corporate role in a random city is making 100k EUR at 2YOE. If they were then Europe wouldn't be what it is. This sounds like a top outcome if you're selecting for a 9-5 in LCOL. So if you're gonna compare top outcomes in that sphere, you should compare it to top outcomes in London, otherwise this comparison makes no sense.
That being said, what you've said isn't entirely inaccurate. Yes, definitely if living an average life your outcomes are going to be better in a place with less wealth inequality and a better balance of COL/comp like the European cities you describe. London isn't really that.
But is that your aim? To be average? I say, who cares where your class went or what the average outcome was. Where are YOU going? That's all that really matters when weighing up these choices...
Ultimately, I think the reason Europeans come to London again and again and again is to give themselves more options for their future. And that remains true - London does provide that. That doesn't mean you have to stay in London forever. If you end up being the person who wants the LCOL 9-5 life, then fine you can move back. Amsterdam, Frankfurt, Munich and Zurich or whatever aren't going anywhere.
Optimizing my career on the little chance of becoming a UMM/MF PE/ HF Partner and therefore accepting a significantly lower qualify of living seems dumb to me.
What point of comparison are you making here exactly to justify this "significantly lower quality of life" statement?
I'm curious.
Also it's 110k without bonus. Pretty sure the buddy doesn't get 100%
This is not standard salary in Cont Europe at all, maybe in Switzerland but then it's not LCOL
London housing market is over hyped but one reason for that it's the London UK is the ultimate wealth destination.
There is pros and cons but If you are wealthy it's a great city to be in.
Before brexit and LIBOR ends off course it was one of the wealthiest place on earth money was flowing in like grazy banks was giving out loans easy and allmost anyone who was asking got credit cards :) libor replaced by SOFR means USA took the control away from City of London.
The story about Queen and royalty is just story now the real KING and real royalty over world is now NYSE and wall street including CME GROUP and Blackrock and blackstone and it doesn't seems like usa money power will be taken by the European and UK royal powers any time soon. The power of city of London influence is now just the nice story the real power is in new york and the money power doesn't need the CROWN to show you who's the boss 😂 once upon time we had pope of rome or uk queen or royals of europe who ruled the world but now we got just BLACKROCK it's king and Queen all together. Royal influence is just nice story what can be sold to tourists and nice on history books but the real decisions are made by CIA and blackrock:) there is your royal crown 🏆😎
Take your medication
...not sure about these data points, but the math seems a bit off / odd.
Ultimately, a decision where to live /work is conditioned by multiple factors, beyond comp. Furthermore, it is also within a given timeframe. Finally, OP refers to averages, then again to outliers.
Nonetheless, London is a fantastic city to work and live, and in many ways different/unique to any other EU capital/city. To each their own, you mileage may differ.
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