Boutique investment bank Evercore has raised salaries for London juniors for a second time, keeping pace with larger rivals after salaries rose last year.
The US-headquartered bank raised starting salaries from £63,000 to £70,000 when it unveiled its bonuses last week, according to people familiar with the matter. Second year analysts are now paid £80,000 and third year analysts are paid £90,000. Previously, it raised salaries in the UK last August.
Recent pay increases bring Evercore in line with its larger peers and follow a pay rise for juniors on Wall Street, where it remains one of the highest-paid banks.
Last August, Evercore raised starting salaries for US-based analysts to $120,000 as investment banks struggled with burnout in their junior ranks. That was about $20,000 more than larger peers like JPMorgan and Goldman Sachs, which raised wages in response to a uprising by younger workers as hours spiraled amid an unprecedented boom in deals. Major banks have since raised starting salaries again to $110,000 in the US.
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Wage increases in the US have not always been followed by similar increases in London. Citigroup raised analyst salaries in the UK from £60,000 to £70,000 – and £80,000 for those in their second year – in August. This was around eight months after the second pay rise for analysts in the US.
UK staff salaries at Evercore are now £120,000 for those in their first year, £135,000 for those in their second year and £150,000 for those in their third year, the people said.
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Banks have struggled to keep up with junior rivals’ pay rises, but most were less generous with bonus payments as deal flow slowed in 2022. Barclays, Morgan Stanley, Jefferies and JPMorgan have all disappointed with this year’s payouts, analysts told Financial News.
Deutsche Bank will increase starting salaries from $100,000 to $110,000 in October, becoming the latest major investment bank to raise salaries for the second time in a year, after rivals including JPMorgan, Citigroup, Bank of America, Credit Suisse and Morgan Stanley .
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