Investment bankers have retained their privileged status in banking. But the earnings gap within the industry at large is widening.
The pressure on wages may have increased in recent years, but bankers still get more money to take home than most others. Within banking however, the gap in wages has grown substantially.
A director in investment banking for instance on average earns 30 percent more than his colleague in asset management or at hedge funds, according to a survey by «Emolument», a U.K.-based wage expert. A total 1,160 London-based directors took part in the survey.
Switzerland's UBS and Credit Suisse both have important investment-banking units in London.
M&A Claim Top Spot
Investment bankers on average received 369,000 francs (including bonus), buy-side-specialists took 277,000 francs home and directors at rating agencies 189,000 francs (see table).
At the investment banks, merger and acquisition experts earned 326,000 pounds, 16 percent more than the traders. However, put in context with their working hours, the wage package is worth substantially less. Merger and acquisition specialists often work seven days a week, including late-night shifts.
Their trader colleagues meanwhile are more heavily charged during the trading hours but get to finish at the close – making their working days more manageable, because clearly limited to specific hours.
Stuck in Investment Banking
Investment bankers also tend to get stuck in their jobs because they find it hard to give up their flash lifestyle, Alice Leguay said, co-founder of Emolument. Their high demands however are frequently no longer justified as profitability declines in their business.
