Did Deutsche Bank just backdate a big pay hike for its junior bankers?
If you listen to London recruiters, Deutsche Bank's junior M&A ranks have not been a happy place to be of late. While most US banks (and UBS) hiked salaries for their junior investment bankers months ago, Deutsche has been dragging its feet. However, recruiters say the German bank finally informed juniors that it's hiking their pay last Friday.
"I've heard from three people who work at Deutsche that their salaries were increased last week, and we're being advised that juniors will now join the bank on the new higher salaries," says one recruiter, speaking on condition of anonymity. "Third year associates have gone from £95k ($143k) to £130k," he adds.
Deutsche declined to comment on the alleged pay rise. If true, however, it will bring its juniors in line with others in the industry.
What's less clear is whether Deutsche's pay increase was backdated to January, as recruiters say Deutsche's juniors were expecting. If it was, IBD bankers at the German bank will be in for a large payday at the end of this month.
The head of another recruitment firm, also speaking off the record, says Deutsche needed to do something to stem dissatisfaction in its junior ranks. "Morale has been really low there. People have been waiting for the pay increase for such a long time that they've started to feel they're working hard for less compensation than elsewhere. We've had a lot of Deutsche CVs."