Banks that have repaid their TARP funds are now free to reward employees however they want to attract and retain the best talent. Hiring and compensation has already rebounded at firms such as Goldman Sachs, where CEO Lloyd Blankfein recently warned employees against spending too lavishly, and thus attracting the kind of negative attention that has tarnished the industry during the financial crisis, reports Forbes.
In an effort to avoid the appearance of handing out large cash bonuses, many bailed-out banks have boosted executive pay in the form of stock options. Ironically, though, options granted during this bear market may have lower strike prices and may appreciate more than options granted during good times.
In terms of salaries, the average self-reported base salary for investment banking associate jobs at bulge bracket firms range from a low of $72,000 to around $100,000. Average self-reported bonuses vary from $57,000 to $148,000. Salaries at boutiques would be 10 to 20 percent less.
Starting salaries for those with an MBA degree will be higher, ranging from $80,000 to $150,000, depending on the region of the country. Like analysts, bonuses for associates can range from 10 to 50 percent of salary in the first year, and increase to multiples of up to three times salary later on.