Investment Bankers Salary

Banks Must Cut Footballer Pay to Reward Owners, Say British Fund Managers

European and British investment banks should slash pay and cut jobs to redress the balance between employees and shareholders, according to three of the U.K.’s largest institutional investors.

Banks such as Barclays Plc (BARC) , Deutsche Bank AG, UBS AG (UBSN) and Credit Suisse Group AG (CSGN) , which are among the top 10 investment banks in Europe by revenue, raised base salaries and hired more staff following the 2008 credit crisis even as the shares tumbled and the banks cut or halted dividends. Now, shareholders have had enough.

“Investment banks are like football clubs,” said Julian Cane, who helps manage 106 billion pounds ($173 billion) at F&C Asset Management Plc (FCAM) in London, who says he’s “underweight” in Barclays shares. “Being a footballer must be great fun and very lucrative. But owners of football clubs rarely make any money. It’s better to play for the club than to own it.”

Last year, Barclays paid 22 pounds to employees for every 1 pound paid to its owners, while at Deutsche Bank the ratio was 16 to one. UBS hasn’t paid its investors a cash dividend since 2006, while giving 16.9 billion Swiss francs ($21.1 billion) to its personnel last year.

Barclays handed 11.9 billion pounds over as compensation, against 531 million pounds in dividends, according to filings. Deutsche Bank gave staff 12.7 billion euros ($18.1 billion) in compensation and benefits for 2010, while shareholders got 816.4 million euros in dividends.

Falling revenue from sales and trading of stocks, bonds, currencies and commodities at investment banks has driven stock prices lower. Rising capital requirements have also forced firms to reduce return-on-equity targets. UBS and Credit Suisse, both Zurich-based, this week announced thousands of job cuts. It may not be enough, investors say.

“Their cost-to-income ratios are too high compared to the volatility of their revenues,” said Will James, who helps manage 157 billion pounds at Standard Life Plc and holds BNP Paribas (BNP) SA and Societe Generale SA stakes. “They’re all feeding from the same trough and that trough is getting smaller. They need another leg of cost cutting.”

The STOXX Europe 600 Banks Index is the second-worst performing industry group of the wider STOXX 600 Index this year after the basic resources sector. The measure has dropped 18 percent compared with a 5 percent drop in the wider index. Along with their holdings of European sovereign debt, the banks have been hurt by clients’ risk aversion, leading to lower sales of stocks, bonds, commodities and currencies.

Investment Banking Salaries | Financial Crossing

Investment banking analyst – actually do?

Making six figures as a boy of 23, fresh out of college is nice, but if you must work 120 hours a week, you can not be that much for now, is not it?

I really do not, so I had to look at me and bit 'of mathematics.

You can really work harder than you might at McDonald Goldman Sachs, at least on an hourly basis?

Best Case Scenario

For Analyst investment bank which is in the best case ever happened in 2007. Basic salaries were $ 60,000 and bonuses were $ 90,000, for a total of $ 150,000 in damages. Not bad for a first 23 years of "real world of work."

But what about the hours? Typically, entry-level bankers work around 9-10 hours a week during the first year. This might be a bit ', but we will go with him for hours.

A 52 working weeks a year (no, not a holiday) and 90 hours per week,earn $ 32.05 an hour for the years 2006-2007. If you had worked 100 hours, which would have dropped to $ 28.85.

Although he had worked 140 hours a week, every week, it would still be $ 20.60 per hour. And realistically, it is impossible to work very consistent, so you can only do better than this.

But times were not always so good. After the dot-com crash and the beginning of the last major recession, investment banking took a turn for theworst and bonuses disappeared.

Middle Ages: 2001-2002

In 2001-2002, the analysts were lucky to get $ 10,000 for their bonuses. You have worked a lot, but mostly on marketing and pitching clients rather than prices and brings in revenue.

A bonus of $ 10,000 and $ 60,000 salary means $ 14.96 per hour to 90 hours per week. Believe it or not, which is still on wages and McDonalds is not that bad in terms of number of jobs in the United States.

But if you had worked140 hours per week, consistently, then?

Would have made 9.62 per hour.

McDonalds Wages

According to a Wiki page answers McDonalds, the wage is $ 9.30/hour for children 17 and $ 9.57/hour after "4 months of training.

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