Investment banks may be cutting back on their trading activities but for those still in the market the money remains good – especially at JP Morgan.
JP Morgan’s directors earn on average £461,000 a year – £214,000 in salary and a £272,000 bonus, according to a survey by salary benchmarking website Emolument.com.
The JP Morgan bankers, working in sales, trading and research, earn 15% more than rivals at equivalent grades at Deutsche Bank, in second place.
The best paid at a British bank were HSBC’s directors, earning an average £308,000 and putting the bank in 12th place. Barclays was one notch lower, paying an average £280,000.
Investment banks have reduced their own-account trading after regulators increased the amount of capital consumed by those activities. But JP Morgan’s loss of at least $6bn (£3.7bn) in 2012 from its London Whale bet showed that dealing is still a big part of the business.
Morgan Stanley’s traders earned £353,000, placing them seventh in the rankings, while those at Goldman Sachs were paid £330,000 and ranked ninth.
Emolument said Goldman paid its managing directors well – at the top layer of investment bankers – but it appeared less generous than competitors for traders on the next rung down. For those who work in the markets, JP Morgan is the place to be, it said.
Robert Benson, chief executive of Emolument, said: “While the usual suspects Morgan Stanley and Goldman Sachs have fallen in the pay league tables, it is worth noting that Bank of America Merrill Lynch has carved a comfortable spot at number three.” He said banks from continental Europe, such as France’s Société Générale and Crédit Agricole, had the problem of matching pay from their less lucrative home market with high wage demands in London.
Emolument said its estimates were based on responses from 640 bankers in trading, sales and research about their pay for 2013/14.
guardian.co.uk © Guardian News and Media Limited 2010