Salary survey: Investment bankers' pay increases moderately

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Salaries and bonuses at all levels of investment banking have risen slightly in 2001 compared to last year, according to a survey by Citipeople, the online recruitment firm.

Sarah Coole of Citipeople said: "Bonuses are not as predictable. Guaranteed bonuses being offered only a year ago are not as readily available as they were, except for the true star performers who will always be able to command higher salaries and bonuses."

The survey showed first year analysts earning a base salary of 30,000 to 35,000 in 2001, with bonus levels (based on last year's performance) ranging between 7,000 and 15,000. Last year

their salaries ranged between 28,000 and 33,000, with a bonus package ranging between 6,000 and 15,000.

First year associate salaries have increased by more, to between 50,000 and 55,000 this year from 45,000 to 50,000 last year. But bonuses were static at between 30,000 and 55,000.

Fourth year associates' salary levels last year ranged between 60,000 and 70,000, with bonuses at around 235,000. Salaries this year have risen to between 65,000 and 75,000, with bonus levels reaching 250,000.

First year vice-presidents last year earned around 70,000 in salary, with bonuses reaching 325,000. This year their basic salary rose to 75,000 and their bonus to an average of 350,000.

Third year vice-presidents currently earn 85,000, with bonuses at 640,000. Last year, they were earning 80,000 with bonuses of 600,000.

At the highest level in the survey, first-year directors were earning a 90,000 basic salary last year, topped up with a bonus of 650,000. This year, they are earning a basic salary of 100,000 and a bonus of 700,000.

The survey covered corporate finance, project finance, structured finance, corporate broking, and the equity and debt capital markets.

Coole said: "Considering basic salaries and bonuses, people seem to be moving less for the money these days, and more for career progression and personal development."

John Russell, group marketing manager at Citipeople, said: "Investment banking is a good indicator of recent economic cycles. We have recently seen quite a few (banks) making staff redundant.

"It now looks like the water is clearing and confidence is returning, but it is not back to the same level as six months ago. I would anticipate it picking up soon, possibly in a matter of months", he added.