Investment banks cut salaries
Global investment banks look set to cut their salaries for the third year in a row, as the sector attempts to move on from its reputation for excessive remuneration.
While bonuses and other reward mechanisms remain relatively strong compared to other industries, it is clear shareholder returns are now considered more important than offering employees the biggest pay packages, reports the Financial Times.
According to the news provider's analysis of the quarterly reports of major investment banks, nine of the largest institutions in the US and Europe are shrinking their overall outgoing on pay by around five per cent.
This includes salaries, bonuses and other benefits, the newspaper's research revealed. Profits increased by a tenth over the same period, suggesting that the move to curb remuneration is not wholly motivated by attempts to be more parlous.
Tom Gosling, head of PwC's reward practice, said this trend has emerged over the last two years as banks place the happiness of their shareholders at the core of their business model.
"They need to do this, as most banks are still delivering single-digit return on equity ... and the industry continues to face significant regulatory challenges," he declared.
Investment banking returns are not what they used to be in the boom years, with the sluggish global economy and shift in trading patterns making it harder for firms to rake in such impressive profits.
However, this is not a universal picture, with European banks appearing to slash bonuses with considerably more enthusiasm than their counterparts in the US.
In Europe, Royal Bank of Scotland set aside 27 per cent less for investment bank pay in the first three quarters of the year, with the likes of HSBC and Barclays also making major changes.
Goldman Sachs, Morgan Stanley and JPMorgan all reduced bonuses by less than five per cent, suggesting there is less pressure on American firms to reduce their salary rates.
Signup to receive the latest discipline specific articles
Related articles
Teaser
GovernanceContent Type
Fintech
18/04/24
Summary
The role of risk and compliance in financial services As a sizeable, growing portion of the financial services sector, risk and compliance play a vital role in ensuring that firms conduct busine
by
David Clamp
Teaser
Executive SearchContent Type
General
18/04/24
Summary
Private equity (PE) is a growing industry that has always attracted ambitious top talent due to its high risk/high gain capital investment. Pre-covid, we saw the global private equity industry b
by
Tracey Alper
Teaser
Commerce & IndustryContent Type
General
18/04/24
Summary
What is financial contracting? Financial contracting refers to the practice of hiring finance professionals on a contractual basis to fulfil specific roles or projects within an orga
by
Kelvin Murphy
Related jobs
Salary:
£28,000 - £31,000 per annum
Location:
Leeds, West Yorkshire
Industry
Business Services
Qualification
None specified
Market
Commerce & Industry
Salary
£30,000 - £35,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Credit Controller - Leeds - Up to £30k!
Reference
BBBH178529
Expiry Date
01/01/01
Author
Cameron WalshAuthor
Cameron WalshSalary:
£70,000 - £90,000 per annum
Location:
London
Industry
Investment Banking & Capital Markets
Qualification
Fully qualified
Market
Financial Services
Salary
£80,000 - £100,000
Job Discipline
Legal
Contract Type:
Permanent
Description
Legal Counsel - (Capital Markets & Mortgages) London (Hybrid) £70,000 - £90,000 base p/a
Reference
BBBH180118
Expiry Date
01/01/01
Author
Maximillian SombartAuthor
Maximillian SombartSalary:
£35,000 - £55,000 per annum
Location:
Grimsby, Lincolnshire
Industry
Manufacturing
Qualification
None specified
Market
Financial Services
Salary
£50,000 - £60,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Our Grimsby based food manufacturing client is looking for someone experienced in product costing to join them as a Costing Manager.
Reference
BBBH179883
Expiry Date
01/01/01
Author
Dean FollandAuthor
Dean FollandSalary:
£110,000 - £130,000 per annum
Location:
London
Industry
FinTech
Qualification
Fully qualified
Market
Financial Services
Salary
£125,000 - £175,000
Job Discipline
Legal
Contract Type:
Permanent
Description
Commercial Legal Counsel - Fintech (3-7PQE) London (Hybrid / Remote) £110-130k base p/a
Reference
BBBH180111
Expiry Date
01/01/01
Author
Maximillian SombartAuthor
Maximillian SombartSalary:
Negotiable
Location:
Chorley, Lancashire
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£50,000 - £60,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Finance Manager (Management Accounts) - 40% home working
Reference
BBBH180107
Expiry Date
01/01/01
Author
Laura HalloranAuthor
Laura HalloranSalary:
£22 - £25 per hour
Location:
Manchester, Greater Manchester
Industry
Healthcare
Qualification
Part qualified
Market
Commerce & Industry
Salary
£150 - £250
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
Senior Accountant | Manchester | Up to £25.00 per hour | 3 month contract | Hybrid
Reference
BBBH180106
Expiry Date
01/01/01
Author
Jamie MillerAuthor
Jamie MillerSalary:
Up to £41,000 per annum
Location:
Warrington, Cheshire
Industry
Business Services
Qualification
Part qualified
Market
Professional Services
Salary
£40,000 - £50,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
Management Accountant | Warrington - Hybrid | 9-12 month Contract | £41,000
Reference
BBBH180018
Expiry Date
01/01/01
Author
Evie CoatesAuthor
Evie CoatesSalary:
£27,000 - £32,000 per annum
Location:
City of London, London
Industry
Business Services
Qualification
None specified
Market
Commerce & Industry
Salary
£30,000 - £35,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Contract
Description
11 month temporary contract for an Accounts Receivable Assistant with the chance to go permanent at a business services company based
Reference
BBBH180105
Expiry Date
01/01/01
Author
Chelsea MillsAuthor
Chelsea MillsSalary:
€60,000 - €70,000 per annum
Location:
Dublin South, Dublin
Industry
Consumer & Retail
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£60,000 - £70,000
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
FP&A Manager - 12 month contract with further opportunities Fantastic client in telecommunications/retail industry. Opportunity to build experience in FP&A as well as Business Partnering.
Reference
BBBH180100
Expiry Date
01/01/01
Author
Sarah FallonAuthor
Sarah FallonSalary:
£60,000 - £70,000 per annum
Location:
Bristol
Industry
Transport & Logistics
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£70,000 - £80,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
Commercial finance - Financial Analysis - Business Partnering... this has it all!
Reference
BBBH180060
Expiry Date
01/01/01
Author
Craig KilminsterAuthor
Craig Kilminster