LONDON (Reuters) – Most London-based bankers working on mergers and acquisitions (M&A) and advising companies on deals received higher bonuses in 2014, with junior bankers seeing payouts rise sharply, new data showed on Thursday.
Bonuses were up on average 23 percent at 59,400 pounds for associate-level staff and were 20 percent higher at 12,000 pounds for analysts, according to figures from Emolument.com, the London-based salary data specialist.
The survey, based on data from 626 bankers, showed the most senior staff, managing directors, were paid on average 305,000 pounds in bonuses, up 1.6 percent versus the year before.
It marks a turnaround from the previous year when bonuses were mostly lower or flat versus 2012 levels.
A return to rising bonuses is likely to irk some in Britain, where many believe high levels of rewards encouraged the excessive risk taking that led to the financial crisis.
Emolument Chief Executive Robert Benson said the positive start to the bonus season was driven by an increase in corporate activity as well banks’ desire to recruit and retain the best staff.
From 2015 bonuses, which are traditionally paid between January and March and relate to the previous year’s performance, can be no more than an individual’s fixed salary, or double that amount with shareholder approval, under a new European Union cap.
Banks, concerned about losing talent to international rivals, have been looking at ways to keep pay competitive, including hiking fixed pay and introducing allowances.
Barclays has proposed “role-based pay” that will give some senior staff an additional monthly cash sum, while HSBC will hand out quarterly allowances to 665 of its top staff.
Emolument’s data shows fixed pay is up for all of London’s M&A and advisory bankers. Analysts and managing directors have seen the biggest rise, with their salaries climbing by just over 11 percent to an average 50,000 pounds and 270,000 pounds respectively.
(Reporting by Clare Hutchison; Editing by Mark Potter)
London M&A bankers pocket higher 2014 bonuses
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