The banks that pay analysts the worst in London
Analysts at investment banks are paid very well but this doesn't mean they're all paid equally.
Two new compensation reports, released this week by recruitment firms Dartmouth Partners and Pearse Partners, suggest some banks pay a lot more than the rest. The highest paying banks, according to Dartmouth and Pearse respectively are Goldman Sachs and Evercore. The lowest are Deutsche Bank and BNP Paribas.
According to Dartmouth, Deutsche Bank in particular is a paltry payer at the lower levels. The German bank posted its Q3 results yesterday, to mixed results. Much noise has been made about its rather extensive senior banker hiring – and their very big salaries – but it’s also worth sparing a thought for the juniors.
It's not clear how many Deutsche Bank people Dartmouth had in its sample, but the recruitment firm called Deutsche’s compensation “relatively poor”, noting that whilst salaries were “generally” okay, bonuses were among some of the worst in its peer group average. Dartmouth put Deutsche's first year analyst bonuses at £23k compared to an average of £29k – the lowest amongst banks sampled. It said DB paid second analysts under £41k, compared to a group average of £45k.
Dartmouth Partners’ report is broadly on par with Pearse Partner's own numbers from last week, which showed that a Deutsche Bank analyst earns £109k a year on average. However, Pearse Partners said that some banks are paying their London analysts worse than DB: most notably UBS and Barclays. Those banks also performed poorly in Darmouth's estimation.
Not all analysts at Deutsche are equal, though. Whilst 2023 saw a sharp decline for its first-year analysts compared to 2022, by 9%, it had one of the biggest pay rises for second-year analysts (a 4.5% increase), although still far behind Credit Suisse’s 22% increase in AN2 generosity.
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