Finally, young bankers are feeling the love.
Real-time pay-data firm Emolument.com says that, after 2 years of quashed bonuses for young bankers as banks tried to retain their dealmaking senior staff, many institutions found themselves with entire junior teams giving up on banking, put off by heavy regulations on pay, poor press for bankers and a gloomy outlook for the industry, to jump over to private equity, which offered dreams of uncapped pay packages, smaller structures and less scrutiny.
The impact of this exodus has hit pitching capabilities hard and banks now find themselves pushing hard to retain junior talent from leaving as soon as they have earned their stripes through their gruelling analyst and associate training programmes.
With bonuses up 70% yoy for VPs and only 5% for Directors, this is a clear signal that banks are committing to junior bankers by apportioning a substantial slice of the large bonus pool, buoyed by strong deal flow in 2015. Their trading floor counterparts however were not so lucky with bonuses -16% yoy.
It remains to be seen if disgruntled junior traders and salespeople will turn to hedge funds, as bankers have turned to private equity and venture capital firms.
Source - Emolument.com