Analyst bonuses down, but analyst salaries up

1 July 2009

2 minute read

Analyst bonuses down, but analyst salaries up

After weeks of waiting patiently, we can now offer some insights into the state of the 2009 analyst bonus in IBD.

UBS and Citigroup have both announced, and the numbers aren't particularly pretty. However, it's less painful than it might be because salaries have increased to compensate.

According to persons specialized in the recruitment of analysts, bonus numbers at both banks are roughly similar as follows -

· Analyst 1: 10-20k

· Analyst 2: 20-30k

· Analyst 3: 30-45k

Needless to say, this doesn't compare particularly favourably to 2008, when we understood that analyst bonuses at the likes of Goldman and Morgan Stanley were:

· Analyst 1: 16-40k

· Analyst 2: 20-45k

· Analyst 3: 40-60k

Equally needless to say, this year's bonuses look even smaller compared to 2007's, when we understood that they averaged:

· Analyst 1: 48k

· Analyst 2: 63k

· Analyst 3: 77k

All this would be enough to make an overworked 23 year old weep, were it not for the fact that salaries have been increased to (partially) compensate.

We're hearing conflicting rumours on salary increases, however. On one hand, we understand that salaries for second year analysts are up a generous 10-15k. On the other, we hear everyone's simply been shunted into the salary band above, equating to an average 5k increase. Let us know if you can elaborate.

AUTHORSarah Butcher

Global Editor

Si
Silverback
14 July 2011
You never hear about markets becuase compensation in markets isn't as standardised as in IBD.
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sa
sarah
28 February 2010
sorry guys, im not up to speed with u. Whats IBD stand for? which bank does 22 yo six figures work for? Does everyone working in an investment bank regardless of which department there in (e.g Investment banking, asset management or trading) get paid loads of money. if so how much? do traders get more than bankers? what are all the levels you have, to move up in investment banking and stuff like that. i no firstly its analyst 1 then 2. what is all the others?
One of you guys can help me out im sure, im helpless here, not keeping up with you.
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EX
EX-ECM
6 August 2009
I ll give you my comp from the good old days
I was class of 2004 at ECM
1st Year (2004-2005): Salary 35,000 bonus 27,500
2nd Year (2005-2006): Salary 42,000 bonus 35,000
3rd Year (2006-20007): Salary 51,000 bonus 60,000
and i was at the bottom of the good guys.
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FD
FDG
2 July 2009
You traders demonstrate clearly how you cannot grasp the simplest of concepts. The article is about IBD. I, along with some people on here, pointed out that the figures given by 22yo were NOT realistic for IBD - his/her initial point was that the figures in the article were too low. They are NOT too low for analysts in IBD (M&A / Coverage).
It appears it may be a little too much to expect traders to hold together a string of concepts in one thought process....
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DJ
DJJ
2 July 2009
I'm an equity index trader.
In my first year my bonus was 48k - average to below average.
In my second year it was 98k - they said it would have been enormously higher if not for the credit crunch.
In my thirs year (ie 1st year associate) it was about 170k.
So I don't see what's wrong with 22yo's numbers, seems about right.
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