London Salaries Lagging Behind
Is it just me, or are London salaries significantly lower than NYC at the moment?
I know a few people getting sign ons of $25-$50k in NYC, compared to £5-£10k max in London. Similar difference for base and bonuses...
Is it just me, or are London salaries significantly lower than NYC at the moment?
I know a few people getting sign ons of $25-$50k in NYC, compared to £5-£10k max in London. Similar difference for base and bonuses...
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I think this is partially due to the currency depreciation
not partially, majorly.
From a compensation point of view, London is the worst city in Europe, IMO
Might be a dumb question, but is this 25k-50k for associates?
What sign on bonus pays $25-50k? (Aside from Centerview).
Most if not all BBs pay $10k signing and EBs also
For experienced analysts and associates, it's not uncommon in the US to get a sign-on. For associates coming out of b-school, the sign-on is meant to offset at least some of the costs of the MBA, but also help with other expenses like moving costs, suits, etc.
And it's not just your perception, London doesn't pay as much as NY at the moment. It's not just on a currency-adjusted basis. It has been that way for a little while now.
London pays less yes. But life is much more expensive in NY... Still better in NY overall, but not as much as it looks like.
I have a good friend who transfered to NY, she is happy with the move in general, but she told me she is not saving that much more despite being paid more.
Currency depreciation? Don't think so - it's such a noticeable difference, London just pays less.
Agree with @PatrickBateman1, not a good place to become financially free IMO.
Not sure about NY being more expensive than London - if you can manage to keep your fixed costs low (e.g rent which is astronomical in London, 40-50% of salary) then I guess the rest it's up to you to spend/save.
It is literally currency depreciation.
The difference before the brexit blip wasn't that big and there was a time where London paid way more because the GBP was at 1.8-2x the dollar.
Sorry When did gbp trade at 2x of usd?
To op: I think london has been lagging behind mainly due to the pay scale being adjusted way less than the us in last few years Currency depreciation is bs if u look at base pay It is still lower even u apply the pre brexit fx rate
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As everyone mentioned above, the Sterling depreciation is the most apparent factor but I think its also mainly due to NYC salaries increasing at a higher rate (especially for juniors) whereas London salaries have remained fairly stagnant. The currency situation only makes it look worse.
On cost of living, I'd disagree London is that much cheaper than NYC. I have friends in NYC, who are yes paying exorbitant amounts on rent (but so are Londoners tbh), but everything else is about the same if not cheaper. Going out for a decent meal and a few drinks in London literally feels like I'm ballin out.
Pay compared to COL is quite low in London and if you factor in the current FX rate, London really is the worst place ATM.
During summer training the continental Europe analysts were spending way more than the UK pay people, due to two reasons. One was that their accommodation was paid for. The second is that their salaries are based on a legacy FX rate of 1.35 EUR per GBP. So were the UK analysts got paid 50k GBP, they got 65k EUR, which means about 58k GBP at current rates. COL is also lower in continental Europe, so really London is only the place to be for a learning perspective (and fun!)
It's worth noting that this doesn't just apply to banking - pay in London is lower across all sectors. In fact the pay differential between London and the likes of NYC / HK is less in IBD than in consulting / medicine / law.
Currency is just part of the reason - junior pay has barely increased since 2008, and in real terms has almost certainly shrunk. Add to that the ~40-50% tax rate and it's not looking pretty...
Would agree. Pretty sizeable difference in US A1 vs UK A1 salaries, and the quality of life aspect is even more true.
E.g. iPhone X $1000 vs £1000 lol.
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