Note: This table is based upon conversations with banking insiders about yearly bonuses that were paid between December 2011 and February 2012. MM denotes millions. K denotes thousands of US dollars.
We are hearing a lot more diversity in compensation levels than usual. The old rules that implied highest comp at the most prestigious firms no longer apply. This is less true at the analyst level where firms try to harmonize compensation with "The Street". Firms will raise starting offers, more or less, in lock step at this level. However, the situation differs at more senior levels - even mid Associate.
But the big issue today is the lack of cash in comp. Base cash salaries have gone
up but the cash part of bonuses was less than $150,000 in most firms and, in some firms, cash bonus comp was capped at $75,000. Well known firms such as JP Morgan, Bank of America ML and Goldman took cash comp down substantially. This has caused an exodus for other more interesting areas.
A related salary trend involves compensation across areas. Obviously, with the new financial reforms, certain areas like prop trading, institutional equity sales and securitization are under pressure. In contrast, other banking areas like health care M&A/financing and private banking are in growth mode and compensation levels have held up.
Also Check Out:
Salary and Industry Tales
Den of Thieves By James Stewart