At £80,000 the average 2016 bonus is still a healthy number, but it’s a significant fall from the £100,000 paid in 2015. That’s according to a study of 648 vice presidents — those a few years into their banking careers but who haven’t yet made it to MD or partner status — at London investment banks by salary benchmarking site Emolument.com.
That drop is reflected in the fact that only 40% of M&A bankers said they are happy with their 2016 bonus.
Emolument points out that the decline in M&A bankers’ pay comes despite a record year for global deals in 2015. Announced M&A totalled $ 4.7 trillion last year, according to Dealogic, falling to $ 3.7 trillion this year.
Emolument adds: “A bonus increase is to be expected in 2017, when most of the M&A deals will have closed and fees have been paid.”
Bankers in origination have seen the biggest yearly fall – down 30% to £45,000 – while those working in sales have seen a bonuses tick up 16% to £50,000. Researchers saw a 12.5% bonus increase, while for traders bonuses remained flat.