Bonus gloom for mid-market bankers

Which breed of M&A banker is on track for the biggest bonus hike this year? If fees are an indicator of payouts, people working at large banks are on track for the heftiest increase. Meanwhile, those working on deals valued between $100m and $500m could be in for a shock.

Figures from research firm Thomson Financial show bankers working on the biggest deals saw the biggest increase in their fees in the first half of this year. According to Thomson, the money banks earned on deals worth over $500m more than doubled between January and June to $4.2bn, up from $1.8bn in the first half of 2005.

Fees earned on the smallest deals of $100m or less also put in an acceptable showing, rising 13% to $4.5bn.

But fees for mid-market deals worth between $100m and $500m fell 4% during the six months to June.

While bonuses therefore look perky for M&A types at the bigger banks (who typically work on the largest deals) and for employees of small boutiques (who typically work on the smallest deals), payouts for those working on mid-sized deals may yet suffer.

M&A professionals at the likes of Fortis, Rothschild and the Big Four accounting firms have been warned...