Compensation Survey 2021

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Introduction

Welcome to the 2021 eFinancialCareers When total compensation is considered on a

compensation survey. Based on over 4,500 per-hour basis, sales and trading jobs pays better
responses to our salary and bonus survey than any other role in banking, and the buy-side
between July and September, this year’s survey pays much better than the sell-side. Quants have a
offers an insight into where pay has been higher average hourly compensation people in the
strongest as we approach the new bonus round. In investment banking division, but they work nearly
a year when the emphasis has been very strongly 30% fewer hours. Only people in compliance and
on working hours, it also suggests which roles pay technology work less than a 50-hour average
well on an hourly basis and which don’t. week.

Contents

The best paying jobs in investment banks globally,

and why you want to work in tech 3
The highest paying hourly pay in investment banks globally 4
Pay in the investment banking division in the UK,
the US, Asia and Continental Europe 5
Sales and trading pay in the UK, the US, Asia and Continental Europe 6
Technology pay in finance 8
Quant pay in finance (global) 9
Risk pay in finance (global) 10
Compliance pay in finance (global) 11
Accounting pay in finance (global) 12
Pay on the buyside vs. pay on the sell-side 13

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The best paying jobs in investment banks
globally, and why you want to work in tech
Comparisons between different parts of the In other roles, however, the compensation range
investment banking industry are often skewed by is less broad. In technology, for example, both
the existence of a small number of extremely well- mean and median pay are relatively equal, and
paid individuals whose compensation is enough to the median respondent in technology earned
affect the entire category average. roughly the same as his or her counterpart in
the investment banking division. On this basis,
This is particularly observable in the sales and technology jobs in banks look like a solid route to
trading, where the link between revenues and strong pay.
individual compensation is typically strongest, and
where the mean average of total compensation is
significantly higher than the median.

Sectors ranked by average pay Mean Total Compensation ($US) Median Total Compensation ($US)
1. Sales and Trading 406,847 280,400
2. IBD 273,028 194,779
3. Risk 197,352 189,300
4. Technology 196,796 195,000
5. Research 195,219 165,200
6. Finance 180,282 126,143
7. Compliance 169,950 126,143
8. Operations 130,347 111,650
9. Corporate Banking 120,926 111,650

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The highest paying hourly pay in
investment banks globally
After this year’s complaints from analysts at If you want to earn the highest pay per hour in
Goldman Sachs, it’s become common knowledge an investment bank, then sales and trading is the
that high pay for junior bankers is largely a place to be. Although salespeople and traders
compensation for long working hours. However, typically have early morning meetings before
our survey found that the average isn’t as markets open and may have market wrap-up
excessive as the 120 hour weeks Goldman juniors meetings, their roles are anchored in market hours.
were complaining about. – The average working Their pay per hour is therefore higher, although the
week for people in the investment banking stress and mental effort required in those shorter
division at all levels is ‘just’ 73 hours. hours also has to be taken into account.

However, this still means that on an hourly basis Further down the table, although research is
the investment banking division is a comparatively generally a significantly better-paid job than finance
unlucrative place to work. Average pay per hour or compliance, it’s worth considering that this is
for people in IBD is only slightly better than for largely because research analysts work as much
banking technology staff, and is somewhat worse as two hours a day longer than their colleagues in
than for quants. those roles.

Sectors ranked by average Average hours worked per Average Pay per hour (no Average Pay per hour (incl.
pay per hour incl. bonus week bonus) US$ bonus) US$
Sales and Trading 55 78 148
Quant 50 65 92
IBD 73 43 87
Technology 48 65 82
Risk 51 58 75
Compliance 48 59 72
Finance 50 47 67
Research 58 46 66
Operations 53 40 50
Corporate Banking 53 31 43

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Pay in the investment banking division
in the UK, the US, Asia and Continental Europe 
If you work in an investment banking division by very large average bonus payments, total
(M&A, equity capital markets or debt capital compensation for managing directors in America
markets), you probably want to be in the USA. The was more than three times as much as the next
U.S. is the biggest market with the biggest fees; in best market, the UK, and twice as much at the
2021 fees earned from U.S. M&A deals alone are director level. Below director level, APAC was the
set to reach $2 trillion according to Refinitiv – up lowest-paying region. Continental Europe, on the
nearly 140% on last year. other hand, seems much more egalitarian, with
only a 25% difference in compensation between
In America, bonuses for investment bankers are managing director and vice-president.
particularly significant at the higher ranks. Driven

UK US

Job title Average Average Average Total Job Title Average Average Average Total
Base Salary Bonus Compensation Base Salary Bonus Compensation
US$ ($US) ($US) US$ ($US) ($US)
Managing 365,900 322,315 688,215 Managing 396,429 1,792,143 2,188,571
Director Director
Director 254,242 233,083 487,325 Director 281,667 513,333 795,000
VP 199,453 161,507 360,960 VP 233,571 196,357 429,929
Associate 158,074 75,356 233,430 Associate 169,714 106,643 276,357
Analyst 82,634 34,877 117,511 Analyst 100,000 41,000 141,000

APAC Continental Europe

Job Title Average Average Average Total Job Title Average Average Average Total
Base Salary Bonus Compensation Base Salary Bonus (€) Compensation
US$ ($US) ($US) (€) (€)
Director 191,764 123,457 315,221 Managing 186,723 108,787 295,510
Director
VP 162,404 67,095 229,499
Director 171,248 109,091 280,339
Associate 160,000 44,833 204,833
VP 143,341 95,899 239,239
Analyst 70,580 4,125 74,705
Associate 115,817 82,609 198,427
Analyst 74,337 36,522 110,859

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Sales and trading pay in the UK,
the US, Asia and Continental Europe
Sales and trading (S&T) jobs are some of the best as many whales left in New York. - London sales
paid globally. At the very top of the pay scale, and trading tends to be driven more by Rates,
managing directors on the trading floor can earn FX and credit than equities or investment grade
an average of seven figures in combined salary bonds. This means that electronic trading hasn’t
and bonus, while directors easily earn in excess of eroded London margins as much as in New York,
$500k. and personal franchises can be stronger in some
areas.
However, the trading floor is also a place of
extremes. – Managing director (MD) pay is In general, the high pay in S&T needs to be
easily skewed by a few high earners with big considered in the context of shrinking job
bonuses, while underperformers are more likely opportunities as automated platforms take over.
to be paid no bonus at all. The range is large The more commoditized and lower-paid roles are
and the average is less consequential. We first to be replaced.
are not providing average managing director
compensation for this reason. In Continental Europe and APAC, sales and
trading pay is much lower than in New York and
Sales and trading may also be the one areas London. However, managing directors in both
of banks where staff in London earn more than locations are paid significantly more than director
in New York City. This might be due to sample level, again reflecting the importance to the
bias, but it’s also possible that there just aren’t averages of a few huge earners.

UK US
Job Title Average Average Average Total Job Title Average Average Average Total
Base Salary Bonus Compensation Base Salary Bonus Compensation
US$ ($US) ($US) US$ ($US) ($US)
Director 307,192 326,503 633,695 Director 256,481 291,963 548,444
VP 193,838 146,782 340,620 VP 199,458 159,271 358,729
Associate 153,342 62,585 215,927 Associate 142,222 111,889 254,111
Analyst 79,226 28,555 107,781 Analyst 88,000 19,000 107,000

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APAC Continental Europe
Job Title Average Average Average Total Job Title Average Average Average Total
Base Salary Bonus Compensation Base Salary Bonus Compensation
US$ ($US) ($US) US$ ($US) ($US)
Managing 444,750 370,500 815,250 Managing 302,582 609,895 912,477
Director Director
Director 266,159 315,469 581,628 Director 209,471 220,624 430,095
VP 194,797 142,064 336,861 VP 119,572 63,679 183,251
Associate 283,492 51,773 335,265 Associate 91,338 27,334 118,671
Analyst 80,429 21,525 101,954 Analyst 59,729 8,118 67,848

Oren Elbaz/Unsplash

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Technology pay in finance (global)

As we saw above, pay for people in technology equivalent to pay for directors in sales and
roles in finance is comparatively impressive at the trading. Bonuses are to blame: bonuses are
median, but doesn’t have the outliers which drive big in technology, but not compared to front
front-office averages. office roles. At low ranks in technology bonuses
were typically 20-30% of base salaries. Even
Our data suggests that pay for managing at MD level, technology bonuses are typically
directors in technology functions is roughly percentages rather than multiples of base.

Job title Average of Base Salary Average of Bonus ($US) Average of Total Compensation
US$ ($US)
Managing Director 275,000 220,833 495,833
Director 207,870 66,173 274,043
VP 169,979 24,769 194,748
Associate 109,164 25,128 134,293
Analyst 74,988 19,140 94,128
Grand Total 155,888 40,908 196,796

Markus Spiske/Unsplash

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 Quant pay in finance (global)

While technologists in finance aren’t badly paid, with advanced degrees in mathematical statistics.
once you get beyond analyst level, quants are The real source of higher earnings for quants is
paid more. more likely to be the fact that they have more
opportunity to demonstrate revenue generation
Quants working in banks tend to have a different and so earn far higher bonuses, particularly if
skill set from general finance technologists, often they’re located on trading desks.

Job title Average of Base Salary Average of Bonus ($US) Average of Total Compensation
US$ ($US)
Director 256,059 141,830 397,888
VP 165,276 70,439 235,715
Associate 120,677 31,878 152,555
Analyst 71,887 8,255 80,142
Grand Total 164,326 66,880 231,206
antoine-dautry/unsplash

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 Risk pay in finance (global)

Pay for risk specialists really brings the front full rank lower than those self-classifying as quants.
office/back office distinction into focus. Many risk
managers have similar qualifications and skills Our data suggests that risk MDs earn the same as
to those of quants and there’s some overlap in quant directors and that directors in risk earn only
roles (with many market risk specialists also being slightly more than quant VPs. In risk, the balance of
quants) but the total compensation of people total compensation is skewed toward base salary
classifying themselves as working in risk is almost a rather than bonus.

Job Title Average Base Salary US$ Average Total Average Total Compensation
Compensation ($US) ($US)
Managing Director 249,400 108,800 358,200
Director 222,898 65,716 288,613
VP 154,910 38,304 193,214
Associate 86,955 24,778 111,733
Analyst 58,665 4,645 63,310
Grand Total 154,154 43,198 197,352
Markus Spiske/Unsplash

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 Compliance pay in finance (global)

Although technology is often seen as a Cinderella Pay progression in compliance is also not
job, the real forgotten workers of investment great. Directors in compliance earn only slightly
banking are arguably the compliance staff. Despite more than vice-presidents in compliance. More
having a crucial role in keeping the bank out of noticeably, compliance directors earn less than
regulatory trouble (and averting massive conduct many associates in front office jobs. On the plus
fines), pay for people working in compliance is side, compliance is one of the roles with the fewest
lower than for any other specialty in the survey. hours worked per week, so there may be a better
work-life balance.

Job title Average of Base Salary Average of Bonus ($US) Average of Total Compensation
US$ ($US)
Director 158,962 23,516 182,477
VP 151,278 29,056 177,113
Associate 75,191 8,626 83,816
Analyst 56,200 5,961 62,161
Grand Total 110,408 16,781 126,392
sscott Rodgerson/Unsplash

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 Accounting pay in finance (global)

The good news is that accounting functions of director and managing director level, accounting
investment banks have a steeper progression jobs often involve more input into business
than most other back-office roles. At the lower strategy, and are paid accordingly. These higher-
levels up to Vice-President, general accounting level positions are often filled by transfers from
jobs are, as one might expect, not as well paid as front office.
the specialists in compliance or risk. However, at

Average of Base Salary Average of Bonus ($US) Average of Total Compensation

US$ ($US)
Managing Director 380,853 583,333 964,187
Director 178,362 75,231 253,593
VP 121,209 22,729 143,938
Associate 77,225 17,849 95,074
Analyst 52,919 1,569 54,488
Grand Total 118,757 55,939 174,696
Clayton Robbins/Unsplash

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Pay on the buy-side vs. pay on the sell-side

Direct comparison between buy-side and sell- a bank, compensation is close to the UK average
side compensation is tricky, because the roles and higher than APAC or Europe.
are different. One thing which it is possible to say,
however, is that hourly pay is much better on the Hedge funds, as one might expect, pay the best.
buy side, largely because there is no equivalent to On average, a portfolio manager in a hedge fund
the very long hours worked by junior bankers on will earn more than a private equity MD, and is
comparatively low pay. compensated similarly to managing directors
in sales & trading on the sell side. Hedge fund
Comparing roles which might be seen as in technologists earn somewhere between the
competition for the same talent, we can see compensation of general investment banking
that global compensation in private equity is techies and quants.
reasonably comparable compensation for bankers
in IBD. Although managing directors in investment Pay in the traditional asset management sector
banking divisions can do much better in the USA, is considerably lower than in hedge funds. This
elsewhere pay between the two areas is fairly is almost entirely the result of far more modest
similar. Taking “principal” in private equity as a bonuses.
rank covering the VP and director equivalents in

Mean pay per hour, buy-side vs sell-side:

Average of Base Salary
US$
Buy-side 95.73
Sell-side 59.93
Grand Total 73.16

Average pay in private equity (global):

Job title Average of Base Salary Average of Bonus ($US) Average of Total Compensation
US$ ($US)
Managing Director or higher 223,072 364,744 587,816
Principal 184,001 128,833 312,834
Associate 109,398 58,005 167,404
Analyst 64,319 20,939 85,257
Grand Total 130,713 99,496 230,209

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Average pay in hedge funds:
Job title Average of Base Salary Average of Bonus ($US) Average of Total Compensation
US$ ($US)
Portfolio Manager 237,931 529,640 767,572
Technologist 191,934 126,495 318,428
Trader 150,341 225,094 375,435
Analyst/Researcher 141,338 142,467 283,806
Support Staff 121,200 87,660 208,860
Grand Total 163,415 196,791 360,207

Average pay in asset management:

Job title Average of Base Salary Average of Bonus ($US) Average of Total Compensation
US$ ($US)
Portfolio Manager 157,015 80,821 237,836
Trader 141,701 114,063 255,764
Technologist 131,080 35,327 166,408
Support Staff 120,355 64,171 184,526
Analyst/Researcher 111,818 55,378 167,196
Grand Total 130,783 68,051 198,834

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