Deutsche Bank is raising pay for junior bankers again to keep pace with rivals

Deutsche Bank will raise the starting salaries of its junior bankers to $110,000, bringing them in line with larger rivals that have raised pay at least twice in the past year.

The German lender will roll out salary increases for analysts in October, according to people familiar with the matter. Salaries in the first year will increase from $100,000 to $110,000 and in the second year from $105,000 to $125,000. The increase applies to staff in Deutsche’s corporate finance unit, but not in its markets business.

Deutsche’s move makes it the latest major investment bank to raise analyst pay for the second time in the past 12 months. Banks has increased starting pay by about 30% over the period, with starting salaries rising from $85,000 in 2021.

TO READ Credit Suisse upsets European bankers with retention bonuses targeting key staff in the US and Asia

Deutsche raised salaries for U.S. analysts by $15,000 last July and by $25,000 for first-year associates, with corresponding increases worldwide.

Deutsche Bank also unveiled analyst bonuses on Aug. 4, with employees telling Financial News that the bank paid between 60 and 100 percent of salaries this year, although some rivals cut the variable pay

A spokesman for Deutsche Bank declined to comment.

TO READ ‘It’s disappointing’: Junior bankers on $110,000 salaries face bonus reality check

Banks have been responding to an exodus of junior staff during an unprecedented deal-making period in which fees hit a record $130 billion. A leaked presentation by a Goldman Sachs analyst group in March last year highlighted the brutal 100-hour weeks that respondents said had affected their physical and mental well-being.

Both Wall Street and European banks have raised pay for a second time in 2022 to keep pace with Goldman Sachs, which was the last to raise pay last year but outperformed its rivals.

Credit Suisse and Nomura were among the latest banks to raise the starting pay of analysts to $110,000 in July. Citigroup, JPMorgan, Morgan Stanley and UBS announced a second round of pay increases for juniors earlier this year. Wells Fargo also unveiled a new salary increase for analysts worldwide in June, covering all major lines of business in its corporate and investment bank.

To contact the author of this story with comments or news, please email Paul Clarke


Source link

You May Also Like

About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!