Young bankers at European firms shouldn’t hold their breath for a pay rise.
The Wall Street Journal reports that while first year analysts at several major U.S. banks, including Goldman Sachs Group Inc., are looking forward to fatter paychecks, it seems their European counterparts can brace themselves for relative austerity.
A person familiar with the matter says that Barclays in the U.S. will increase junior banker pay in line with the rest of the street. It’s not clear whether Barclays will do the same for its operations in Europe.
UBS said it was comfortable with the current mix of pay and bonuses, according to one person familiar with the matter.
UBS increased salaries for junior bankers a year ago having concluded that it was out of step with rival firms, this person said. Along with Morgan Stanley, UBS was one of the first investment banks to start increasing base salaries for junior staff after the financial crisis hit in 2008 to compensate for collapsing bonuses.
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