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 doesn’t comment, but a post on Litquidity’s Instagram site says first-year analyst bonuses at JPMorgan are on par with first-year analyst bonuses at Morgan Stanley, with top-ranked analysts receiving 30,000 £ ($37,000) on top of their £. 70,000 salaries.
An executive director of JPMorgan confirmed that junior bonuses this year are relatively low. On Wall Street Oasis, people claiming to be JPMorgan’s first-year analysts in the US can be seen complaining that lower/mid-level bonuses for first-years are $20,000 to $35,000, that bonuses mid-tier are $40,000 and upper tier is $60,000 to $70,000. 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 quite good this year. Financial News reported yesterday that bonuses at Bank of America amount to 75% to 100% of base salaries for the first years, compared to 30% at Morgan Stanley. Similarly, UBS would have been generous.
Citi analysts in particular are eager to find out their bonuses for 2022. As we reported here, Citi analysts have complained that their salaries remain below the market average for US banks in London, at 60,000 £ for the first years, £65,000 for the second years and £70,000 for the third years (other US banks pay £70,000 salaries in the first year).
Citi analysts tell us their bonuses will be announced on August 10, with bonuses paid on the 17th. An insider said this would give the bank an opportunity to benchmark bonuses to US rivals who announce first. “After paying poorly last year and failing to raise wages, they would have to pay significantly more than other banks to meet expectations,” he said.
Instead, it looks like junior bankers’ pay is being rebased after US banks’ investment banking division revenues fell 48% year-on-year in the second quarter (according to Deutsche Bank). Previous reports suggest Barclays has also cut analyst bonuses this year.
While first-year analysts were unhappy with the bonuses, second-years seem to have been treated better. The top-ranked second years at Morgan Stanley in London would have received £57,000 in London with a base salary of £80,000.
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