Are bankers in Moscow being paid enough to compensate for the immense cost of living?
Bankers in Moscow are well paid. According to BBM Search's bonus and salary survey for 2012, bonuses which are large multiples of salary are still common.
Specifically, BBM says Moscow-based equity researchers can earn the following large sums (in US dollars) at each level of seniority.
Equity research analyst: Salary: $64k. Bonus: $51k. Total: $115k
Equity research associate: Salary: $96k. Bonus: $192k. Total: $288k
Equity research VP: Salary: $158k. Bonus: $410k. Total: $569k
Equity research director: Salary: $184k. Bonus: $846k. Total: $1m
Equity research managing director: Salary: $276k. Bonus: $1.5m. Total: $1.8m
This looks very generous. In London, a director level equity researcher specialising in the telecoms media and technology sector can expect to earn $515k, says BBM.
But is it really? Yesterday's cost of living ranking from consultancy firm Mercer confirmed that Moscow is one of the world's most expensive cities to live in. Ranking fourth, it was ahead of Geneva and Zurich and behind only Tokyo, Osaka, and Luanda (in Angola). By comparison, London ranked 25th and New York 33rd. In the circumstances, a 10% premium for working in Moscow instead of London doesn't look very generous after all.
