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Re: New Prime Minister: Liz Truss
Kwasi Kwarteng, the new Chancellor, has mooted lifting the cap on Bankers’ bonuses (which has been in place since 2014) - YouGov did a survey on it…
https://www.bbc.co.uk/news/business-62906854
Quote:
The Treasury is considering removing a cap on bankers' bonuses as part of a post-Brexit shake-up of City rules.
Sources said no final decisions had been made, but confirmed chancellor Kwasi Kwarteng considered it a way of making London a more attractive place for global banks to do business.
City bosses have long complained about the EU-wide bonus rules which cap bonuses at twice an employee's salary.
They say they lead to higher base pay that pushes up banks' fixed costs.
Those costs cannot be adjusted in line with the firm's financial performance, they add, making the UK less attractive than the US or Asia.
People close to Mr Kwarteng confirmed reports in the Financial Times that the new chancellor is considering the move.
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https://yougov.co.uk/topics/economy/.../09/15/e8157/2
For context, here is a recent article on Investment Bankers’ salaries.
https://www.efinancialcareers.co.uk/...s-banks-london
Quote:
Following the new increases, the average junior VP, aged approximately 28 is on a total package of £395k. Within just two years, this rises to £439k (senior VPs are now on salaries of £171k and bonuses of £268k, says Dartmouth.)
This is a big rise on the £300k or so, that recruitment firm Arkesden said senior VPs in London were earning last year. It reflects on the need for solid mid-ranking bankers to manage the armies of new juniors hired in 2021. It also reflects the surge in deals, and the fact that VPs as well as juniors found themselves working often crazy hours during the pandemic.
Some banks pay their VPs more than others, and New York remains far more lucrative than London. In January, we reported that some newly-promoted VPs in London were earning £420k in total compensation. At Goldman Sachs in New York, first second and third year VPs were reportedly on packages of $750k, $800-$900k, and $900k -$1m+ respectively this year.
Dartmouth Partners says Goldman also paid the highest bonuses to its junior investment bankers at analyst and associate level in London. Dartmouth puts Goldman's bonuses at £180k on average for associates and £350k for VPs.
Dartmouth says JPMorgan pays the highest salary to first year analysts, at £70k. However, our own research suggests £70k is the new norm in London and that some boutiques (Centerview) pay up to £95k.
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Last edited by Hugh; 16-09-2022 at 10:51.
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