UK bank adviser pay catching up with traders 

Senior advisory bankers’ pay in London has risen almost on to a par with traditionally higher-earning traders, underlining the shifting fortunes of these distinct businesses within investment banks.

By contrast, senior traders have suffered an average 13 per cent cut to £602,000 after a sharp drop in bonuses, the self-reported numbers from hundreds of staff at 10 European and US investment banks show.

A sharp increase in takeovers as well as debt and equity issuance by companies and other clients since last year has reversed the fortunes of corporate financiers.

“Traditionally, bankers on the global markets side have been paid more but these are tough times in fixed income,” said William de Quetteville, partner at Armstrong International, an executive search company.

By contrast, revenues from advising on deals and underwriting debt and equity issuance have risen 11 per cent in the first six months, fuelled by a resurgence in large takeovers and a flurry of initial public offerings.

Banks including Barclays, Citigroup, UBS and Nomura have been selectively hiring senior advisory bankers, while fast-growing boutique investment banks have also lured away top talent.

Senior bankers say fixed-income traders in particular will continue to face job and pay uncertainty, given the structural challenges in the sector.

These include capital rules that have made certain trades uneconomic, the abolition of trading on banks’ own accounts and the slow but accelerating replacement of traders with machines.

 

Source: FT- UK bank adviser pay catching up with traders

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