New extremes for investment bank bonuses
INVESTMENT banks are paying out unequal pay packets on an unprecedented scale, according to industry experts.
Recruiters who have been in the business for decades say they have never seen such a disparity between those being amply rewarded to keep them and those whose bonus has been scrapped entirely – often in an attempt to persuade them to leave.
“So far this year we’ve seen the greatest polarisation between the haves and have-nots. We’ve also seen a lot of zeroes,” says Jonathan Eckman, a partner at executive search firm Aubreck Leung.
On average, many investment banks have slashed pay by 30 per cent, but the top-line figure disguises a mixed pictures, say headhunters.
“You can’t just look at the headline number,” says Eckman. “For instance if someone was paid down 20 per cent you might think, ‘He did OK this year.’ But if he was paid down 40 per cent last year then the picture is a little less rosy. We’ve never seen this aggressive polarisation in the pools before.”
He added that many managing directors “took the pain” in order to keep up the amounts they can pay more junior associates and vice presidents so as to keep hold of top talent.