The year 2021 was a record year for the big investment banks. They did more operations than ever and this meant that their bankers —some from Wall Street, others from the City of London and a few directing the operations in Spain— have pocketed historic salaries. Pressured by the new generations, who demand better wages and working conditions and who are not willing to accept the marathon days characteristic of the sector, and due to a year of record income, the truth is that 2021 was a year that filled the bulging portfolios of the big bankers.
Goldman Sachs was crowned the most generous bank with its employees, according to the report prepared by the headhunter Dartmouth. It was the only investment bank that paid more than half a million euros, on average and counting all the bonuses, to its employees who are at the top of their careers, the second and third echelon vice presidents. They are closely followed by Citi and JP Morgan, which are close to those 500,000 euros per year for their top bankers.
Banks of European origin, however, are one step below their US competitors. Barclays is the most generous with its employees, with salaries that are closer to those of the United States. At UBS, for example, it stands out for better salaries than its European competitors for the most junior employees, the associates, while its compatriot Credit Suisse has chosen to increase the emoluments of the vice presidents and increase the gap with the youngest.
In the image of honorary course From Ancient Rome, the career of the big investment banks is a highly compartmentalized pyramid. Interns who get a position at one of them start out as analysts for at least three years. Then they go to associates by, at least, between three or four more steps. And finally they reach the rank of vice president.
This report only includes the salaries of vice presidents and associates. But it is in the range of analysts where the labor conflict —as a result of a letter sent by several Goldman Sachs employees last year in which they denounced the leonine working conditions of the bank, with shifts of more than 95 hours per week— where more Salaries have been increased in the last year to try to reduce discontent and attract young talent. They start from 50,000 euros per year for the first year to around 90,000 with which JP Morgan entertains the last year.
The key to the salaries of the great bankers is, however, in the bonuses. This variable salary doubles the base in US entities such as Citi or Goldman Sachs. And it has been this year of exuberance in operations that has triggered the variable charged by its employees. In the case of Goldman Sachs, the bonus of its most senior employees has been increased by 50% by 30% of Credit Suisse or around 15% or 20% of JP Morgan, Barclays or Citi.
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