2017 Analyst to VP Compensation Report Q3

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Dartmouth's 2017 Q3 Investment Banking Analyst to VP compensation report.

 

It’s September and we have four months left that will define our 2017. So far it’s been one of the hottest recruitment markets I’ve seen for years, possibly a decade.

Geopolitical and economic uncertainty abounds: Trump, Brexit, North Korea, Inflation, Prime Ministerial power struggles (Rees-Mogg for next Tory leader anyone?!), the list could go on and on. However, it feels as if we’ve become inured to the unknowns and everyone seems to be just getting on with it. The recruitment market is having something of a boom – driven by a lack of candidate supply and also increased options available to the talent pools we cater for creating more movement. Has the demand-supply resulted in an increased bonus pool?

Analysts at JP Morgan, Morgan Stanley and BAML are much happier with the numbers that they’ve received. The one outlier seems to be Goldman Sachs, where there are those who feel that they haven’t been paid well. This negative sentiment was also noted by Analysts from other banks who indicated they knew friends who weren’t impressed. As always, communication is key as the total comp numbers suggest that they are in line with The Street.

The variation between buckets seems to have widened, as banks are increasingly trying hard to differentiate on performance and reward the best. The range from top to bottom at all Analyst levels seems to be circa 60%. Alongside the compensation trends, we’ve seen some banks step up their fight to reduce attrition.

Demand for Analysts, Associates and VPs across industries is extremely high. In the world of a more mobile, less loyal workforce, Analysts have an increasing array of opportunities and companies who are looking to hire. We have four months to go, but every division within our business is set for a record year, in part because our client base, brand and consultants have matured, and in part because of a buoyant (but not yet booming), market. The demand for well-trained, hungry, ambitious and hard working talent remains.

Private equity remains highly attractive, but I’d say that M&A is enjoying a renaissance, and they’re both engaged in the War for Talent with start-up and established corporates. Even at campus level, firms are fighting it out for bright young things, and our Graduate team are poised for their busiest ever Milkround. Given that, I’ll end on some sage advice from the President – it may even have been a tweet:

“If you’re interested in ‘balancing’ work and pleasure, stop trying to balance them. Instead, make your work more pleasurable.” – Donald Trump

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