League table of the underpaid

As everyone knows (and the Wall Street Journal points out again this morning), banks have reduced the amount of revenues they allocate to compensation.

But based on past performance, some have reduced this amount more than others.

Assuming 2008 was a total anomaly, we've looked at the proportion of revenues each bank allocated to compensation in 2006 and 2007, and the amount each bank should have paid out in comp for 2009, if only 2009 had only been like the past.

The results, based on an average of 2006 and 2007 comp ratios where both are available (or just 2007 comp ratios where indicated), are given below. They suggest people at HSBC. RBS and JP Morgan were most underpaid on a historic basis for 2009. By comparison, UBS bankers did surprisingly well.

Needless to say, the days of 2006 and 2007 have gone. From now on, the compensation ratios of 2009 are likely to be the norm.

1) HSBC global banking and markets

Pay per head, 2009: $223k

Comp ratio 2009: 21.5%

Comp ratio 2007: 36.5%

Pay per head, 2009 based on 2007 comp ratio: $379k

Underpayment: 70%

2) Deutsche Bank corporate and investment bank

Pay per head, 2009 €346.6k

Comp ratio 2009: 26%

Average comp ratio 2006 and 2007: 35.9%

Pay per head, 2009 revenues based on average 2006 and 2007 comp ratio: €476k

Underpayment: 37%

3) RBS global banking and markets

Pay per head, 2009: 174k

Comp ratio 2009: 26.6%

Average comp ratio 2006 and 2007: 35.6%

Pay per head, 2009 revenues based on average 2006 and 2007 comp ratio: 233k

Underpayment: 34%

4) JP Morgan Investment Bank

Pay per head, 2009: $379k

Comp ratio 2009: 33%

Average comp ratio 2006 and 2007: 44.3%

Pay per head, 2009 revenues based on average 2006 and 2007 comp ratio: $505k

Underpayment: 33.5%

5) Barclays Capital

Pay per head, 2009: 196k

Comp ratio 2009: 38%

Average comp ratio 2006 and 2007: 48%

Pay per head, 2009 revenues based on average 2006 and 2007 comp ratio: 242k

Underpayment: 24%

6) Credit Suisse

Pay per head, 2009: CHF445k

Comp ratio 2009: 42%

Average comp ratio 2006 and 2007: 52%

Pay per head, 2009 revenues based on average 2006 and 2007 comp ratio: CHF550k

Underpayment: 23%

7) Goldman Sachs

Pay per head, 2009: $498k

Comp ratio 2009: 35.8%

Average comp ratio 2006 and 2007: 43.8%

Pay per head, 2009 revenues based on average 2006 and 2007 comp ratio: $609k

Underpayment: 22%

8) UBS

Pay per head, 2009: CHF335k

Comp ratio 2009: 81.2%

Compensation ratio 2006 : 52.3%

Pay per head, 2009 revenues based on 2006 comp ratio: CHF229k

Overpayment: 36%