London S&T Salary progression
Hi, there is a lot of data out there on London/New York IBD salary progression and similarly for S&T in NY. I would like to get some clarity about the salary progression as a macro-product trader at a European BB in London and how it compares to NY. I have recently got the chance to enter the NY market, is the difference worth the shift? Also how bad are the taxes in NY, because LDN is brutal.
To give some more context - I got admitted into one of the top 5 business schools in the US for a MFE/MFin program. My parents are willing to pay the tuition. But is the long-term economic benefit marginal or worth the hassle? Also how bad will the job market be for internships next summer in NY?
For any of the roles you’ll be asking about - bonus will increasingly become a larger part of your overall comp, and will be variable dependent on (i) bank performance (ii) asset class performance (iii) team performance (iv) your quartile. The bank will try to underpay you where possible, and as friendly as your MD or DivHead is, they are not looking out for you.
In London - analyst bases will be 60-80k (as you progress to An3), by associate should be 90-110k (again, as you progress to Asso2), and VP range becomes more variable. But generally 120+. This is where things get murkier - bases become less set, there’s more obscurity between people on comp, and banks have ways of increasing people’s comp off-the-record (so that they can pay you a higher bonus, given existing limits). Don’t forget you’ll start getting RSUs as opposed to cash comp (have to heavily discount this..).
So all in as an analyst think ballpark ~85-110k, associate ~135-160k (last year assos made 200k, but beta to overall bank performance driving this), and VPs well north. Think for a top quartile VP 400-500k (unless you’re trading some niche prop product) is market.. Conversely have heard of VPs making ~150k. remember - they’ll underpay you however possible.
Leaving isn’t so easy… Your RSUs.. Political capital.. “Ownership” of your product niche.. And if you’re at a top bank it’s hard to want to make a trade downwards.