RBC's junior bankers have been given a heads-up on bonuses. And they look pretty good
When it comes to bonuses, Royal Bank of Canada (RBC) is a bit of a leading indicator. The Canadian bank doesn't report its fourth quarter results until December 2, but in the meantime recruiters say juniors on the bank's M&A team have been given an idea how much they're likely to get paid. And it's not bad at all.
First-year analysts at RBC are reportedly receiving salaries of £50k, plus bonuses of between 50% to 70% (ie. total compensation between £75k and £85k). Second-year analysts are reportedly receiving salaries of £55k, plus bonuses of between 50% and 70% (ie. total compensation between £82.5k and £93.5k). And third-year analysts are reportedly receiving salaries of £60k, plus bonuses in a similar range (total comp of £90k to £102k).
This puts pay at RBC roughly in line with the average pay for analyst 1s, 2s, and 3s in 2015 of £77k, £93k and £109k respectively.
If RBC is a leading indicator, the indicator seems to be that pay for junior M&A bankers will be flat on last year.
The Canadian bank declined to comment on its compensation. Full bonuses will be announced closer to fourth quarter results. It's expected that RBC will pay its senior M&A bankers well this year - the bank has been making some big hires for its M&A business and will want to keep them motivated for 2016.
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