Analyst bonuses at investment banks: "A terrible disappointment"
More banks have announced their analyst bonuses for 2022. More analysts are disappointed.
Following last week's complaints about analyst bonuses at Morgan Stanley, there appear to be similar complaints about analyst bonuses at JPMorgan.
JPMorgan isn't commenting, but a post on the Litquidity Instagram site says first year analyst bonuses at JPMorgan are on a par with first year analyst bonuses at Morgan Stanley, with top ranked analysts receiving £30k ($37k) on top of their £70k salaries.
One JPMorgan executive director confirmed that junior bonuses this year are comparatively low. On Wall Street Oasis, people purporting to be JPMorgan first year analysts in the US can be seen complaining that lower/mid-tier bonuses for first years are $20k-$35k, that mid-tier bonuses are $40k and that top tier are $60k to $70k. The numbers are variously described as a disappointment and an insult.
The complaints follow suggestions that analyst bonuses at UBS and Bank of America were pretty good this year. Financial News reported yesterday that Bank of America bonuses were 75%-100% of base salaries for first years, compared to 30% at Morgan Stanley. Similarly, UBS is thought to have been generous.
Analysts at Citi in particular are eager to discover their bonuses for 2022. As we've reported here, Citi analysts have been complaining that their salaries remain below the market average for US banks in London, at £60k for first years, £65k for second years and £70k for third years (other US banks pay £70k salaries in year one).
Citi analysts tell us their bonuses will be announced on August 10th, with bonuses paid on the 17th. One insider said this will give the bank an opportunity to calibrate bonuses to US rivals who announce first. "After paying poorly last year and failing to increase salaries, they should pay much more than other banks to meet expectations," he said.
Instead, it's starting to look like pay for junior bankers is being rebased after investment banking division revenues at US banks fell 48% year-on-year in the second quarter (according to Deutsche Bank). Previous reports suggest that Barclays also cut analyst bonuses this year.
While first year analysts have been unhappy with bonuses, second years appear to have been better treated. Top ranked second years at Morgan Stanley in London are said to have received £57k in London on a base salary of £80k.
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