The best paying banks at MD-level - League table

Gold Bar And Coins

While banking is a lucrative career, all banks are not equal.

Here, Emolument has shed some light on one of those aspects: which are the best paying banks overall and also who will share profits with junior bankers the most?

Emolument.com analysed 1,433 salaries from Managing Directors (MDs) and Associates in London to create a league table of the best paying banks. We found that J.P. Morgan pays its MDs 35% more than runner-up Morgan Stanley. Also, MDs at Deutsche Bank and Barclays are rewarded as generously as they would be working for a US bank. At MD level, bonuses represent 37% to 70% of total compensation. As for junior bankers, don't be fooled, working for a bank which pays its MDs the highest doesn't necessarily translate into higher remuneration for Associates.

Best Paying Banks Graph 1

CompanyMD SalaryMD BonusMD TotalAssociate SalaryAssociate BonusAssociate Total
J.P. Morgan £306,488 £612,975 £919,463 £80,000 £25,000 £105,000
Morgan Stanley £300,000 £382,525 £682,525 £88,000 £48,000 £136,000
Deutsche Bank £275,000 £400,000 £675,000 £80,000 £35,000 £115,000
Goldman Sachs £320,000 £354,705 £674,705 £81,000 £50,000 £131,000
Barclays Bank Plc £250,000 £400,000 £650,000 £75,000 £30,000 £105,000
Citigroup £300,000 £326,375 £626,375 £85,000 £32,500 £117,500
Bank of America £275,000 £325,000 £600,000 £90,000 £35,000 £125,000
Nomura £300,000 £260,000 £560,000 £80,000 £30,000 £110,000
HSBC £255,080 £282,500 £537,580 £75,000 £30,000 £105,000
Jefferies £252,000 £221,000 £473,000 £65,000 £11,000 £76,000
BNP Paribas £250,000 £220,000 £470,000 £71,000 £20,000 £91,000
Lloyds Banking Group £210,000 £252,500 £462,500 £55,000 £8,000 £63,000
RBS £242,500 £200,000 £442,500 £75,000 £12,500 £87,500
Credit Suisse £230,000 £180,000 £410,000 £80,000 £20,000 £100,000
Societe Generale £206,500 £162,500 £369,000 £72,000 £30,000 £102,000
UniCredit £220,000 £130,000 £350,000 £70,000 £23,000 £93,000
Commerzbank £200,000 £150,000 £350,000 £60,000 £15,000 £75,000
Credit Agricole £200,000 £147,500 £347,500 £75,000 £27,500 £102,500

Graph 1. & Table 1. Showing Median Salary & Bonus for Managing Directors (MDs) and Associates in London based on 1433 entries.

The name is Morgan. J.P. Morgan: For MDs, J.P. Morgan tops our list of best paying banks with a staggering median total compensation of £919,000, 35% more than the runner-up Morgan Stanley. For Associates, Morgan Stanley takes the lead paying its employees 26% more with J.P. Morgan falling behind on 7th place. So, start at Morgan Stanley as an Associate, and then move to J.P. Morgan at a later stage of your career!

US versus European Banks: US banks feature heavily in the top five, both at MD and Associate levels, with a few incursions from European banks, despite the fact that they have consistently under-performed their U.S. competitors since 2009 [1]: Deutsche Bank MDs make as much as the ones at Goldman Sachs. Will the crushing first quarter of 2016 at Barclays and Deutsche Bank push bonuses down, or will the banks invest in attracting and retaining key players amidst their restructuring?

Stick around for large bonuses: MD bonuses represent 37% (UniCredit) to 70% (J.P. Morgan) of total annual compensation. On the other hand, for Associates that number falls between 13% (Lloyds Banking Group) and 38% (Goldman Sachs).

Best Paying Banks Graph 2

BankMD IncomeFairness Points
Credit Agricole £347,500 20
Societe Generale £369,000 18
Commerzbank £350,000 18
Credit Suisse £410,000 16
UniCredit £350,000 14
Bank of America £600,000 14
Morgan Stanley £682,525 13
RBS £442,500 13
Nomura £560,000 13
HSBC £537,580 13
Goldman Sachs £674,705 13
BNP Paribas £470,000 13
Citigroup £626,375 13
Deutsche Bank £675,000 11
Barclays Bank Plc £650,000 11
Jefferies £473,000 11
Lloyds Banking Group £462,500 9
JP Morgan £919,463 8

Graph 2. & Table 2. Showing the 'Fairness Points' * of each company by the MD Median total income.

All's fair in love and business. Credit Agricole, Societe Generale, Commerzbank and Credit Suisse, banks with the lowest MD earnings score the most fairness points, while J.P. Morgan, the bank with the highest paid MDs, comes last by a wide margin. If J.P. Morgan was as 'fair' as Credit Agricole it would pay its MDs £788,000 instead of £919,000 and increase Associate annual compensation to £236,000 from £105,000.

Alice Leguay, Co-Founder & COO at Emolument.com said: 'We expect that our Fairness Index will vary from one year to the next depending on the bank's needs to retain certain generations of employees. As we saw this year, Associates across the board saw a substantial bump up in their bonuses, while in the previous couple of years, they had been overlooked in favour of revenue-generating staff such as MDs and Directors.'

Source: Emolument, the salary benchmarking site

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