Banker pay

Bankers' shrinking pay packages

Investment banks are grappling with higher fixed costs as a result of an increase in base salaries, and are being forced to lay off staff.
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Hands up, who wants a pay rise?
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<div style="text-align: left;"> Hands up, who wants a pay rise? </div>

With culls taking place across the street, it is a brave new world for out-of-work bankers. But beneath the headline numbers, there have been meaningful changes to pay packages, which have contributed to the predicament that many investment banks now find themselves in high fixed costs combined with slowing deal flow.

“Post-2008, there has been a material shift in investment banking compensation, principally as a result of the backlash from governments and regulators in respect of the size of bonuses awarded by the industry pre Lehman,” said Simon Roberts, managing director at recruitment firm Sheffield Haworth in Hong Kong.

“The result was that banks substantially increased base...

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