We have examined 2014/2013 salary and bonus data from 1,231 bankers and brokers in London.
Higher risk-taking= higher bonuses:Investment Banks, which generally take more risk on their books than their broker counterparts, pay bonuses ranging from £5,000 for Analysts to £250,000 for MDs vs. £1,000 for Analyst at brokerage firms to £161,000 for MDs
Total compensation is on average 23% higher for bankers: Total compensation at Analyst level is 20% higher in banks, gapping far wider at Associate level at 43%
Pay increases at the same rate for brokers and bankers: on average, when bankers are promoted, their pay increase by 75% vs. 72% for brokers
Happy fews?: while banks pay more overall, huge bonus fluctuations mean that only a small top slice of the banker population is earning more than they would as brokers
The difference between brokerage firms and investment banks is not simply down to pay. Some professionals will choose to be paid less, in favour of smaller firms with a less intense corporate environment, which offers more flexibility, and better working hours.
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