Salaries and bonuses are down from their peak in 2007, and there’s a growing divergence in what firms across the industry offer. But banks that are not encumbered by government bailout money are showing greater flexibility in compensating their staff.
The industry has rebounded in 2009, particularly among some of the remaining bulge bracket firms. Hiring in financial services has outpaced the recovery of the broader economy. With continued scrutiny and public controversy over bonuses, some firms are increasing the levels of base salaries and limiting bonuses. Another trend is toward the “banking” of bonuses, which can only be paid out over three or four years.
Starting salaries for analysts at investment banks range from $60,000 to $70,000 depending on the size of the firm and the region of the country. Bonuses are typically 10 to 50 percent of salary at the start, moving to one to three times salary later on.
Average salaries reported by professionals through anonymous online surveys range from $60,000 at boutiques to $99,000 at bulge bracket firms. By the second year, these salaries can grow by as much as 15 percent.
Next time, we’ll look at current salary ranges for Investment Banking Associates.