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According to a recent online article in The Guardian, the City is set to see bigger bonuses this year after a two-year slump. The rise in dealmaking and the end of the interest rate hike cycle are expected to boost compensation, particularly for those at major firms like JP Morgan, Goldman Sachs, and Deutsche Bank. The abolition of the banker bonus cap in the UK further enhances the positive outlook for top earners in the sector. As we look forward to 2024, the future appears bright for investment banking professionals. Read the full article to learn more. 👉 https://lnkd.in/eg2dmasa #InvestmentBanking #BankerBonuses #FinancialServices

After a two-year slump, double digit increases in bonuses projected for Wall Street investment bankers across several sectors.  https://lnkd.in/eRa-MeFX Kalyeena Makortoff covers our compensation estimates for The Guardian and writes about how US compensation may influence pay for bankers in Europe. Johnson Associates also cautioned about market volatility and potential economic softening for the remainder of the year impacting final payouts. #executivecompensation #humanresources #executivepay #investmentbanking #compensation #finance

Our latest Investment Banking Compensation report has been covered by The Guardian. https://bit.ly/3zsESNl Dartmouth's Founder, Logan Naidu, spoke with The Guardian last week to discuss the outlook for the City - and industry in general - following a period of surging interest rates, a slump in deals, and caps on banker bonuses. Our latest compensation report analyses the trends in bonuses and salaries at the Bulge Bracket firms over the last few years, forecasting where we will see strong shoots of growth later in the year and what this means for the hiring patterns and opportunities. Request your copy of the IB Report today to get an understanding of how your total reward compares against your industry peers, and the insights needed to attract and retain the best talent out there. https://bit.ly/3W3Fvpp #compensationtrends #investmentbanking #report #theguardian

✨GOLDMAN SACHS BECOMES THE FIRST INVESTMENT BANK TO REMOVE CAPS ON BANKERS’ BONUSES✨ Goldman Sachs has become the first to remove its cap on bankers' bonuses following changes to UK laws introduced last year. The bank said this would give "greater flexibility" and was closer to what happens in other big financial centres such as Singapore and New York. Bonuses were limited to twice basic pay in a move introduced by the EU in 2014. Other big banks are thought to be considering a similar moves. The limit on bankers' bonuses was introduced by the EU in 2014 despite British opposition, to try to discourage the kind of excessive risk-taking that contributed to the 2008 great financial crisis. Critics argued that banks were able to get round it by simply increasing base salaries. This then made it harder to reduce salaries when bankers performed badly, or claw back pay if misconduct came to light. When it brought in the changes, the Financial Conduct Authority said the change should remove these "unintended consequences". The decision was first announced by Kwasi Kwarteng during his brief stint as chancellor in 2022, in a bid to boost the competitiveness of London as a financial centre. Banks have argued that the bonus cap makes it harder to attract talent from the US and Asia to the UK. Goldman Sachs said in a statement: "This approach gives us greater flexibility to manage fixed costs through the cycle and pay for performance. It brings the UK closer to the practice in other global financial centres, to support the UK as an attractive venue for talent." A number of other banks have reportedly been reviewing their pay policies in the light of the changes. When the decision to remove the bonus cap was announced last year, the Trades Union Congress general secretary Paul Nowak called it an "insult to working people" when "millions up and down the country are struggling to make ends meet." The change will not be universally welcomed by bankers, some of whom prefer to receive more of their income as guaranteed basic pay rather than bonuses which depend on their performance. Spartan International Executive Search Spartan International Group Oliver Rolfe https://lnkd.in/eaAcHNtr

Goldman Sachs removes bankers' bonus limit The investment bank Goldman Sachs has become the first to remove its cap on bankers' bonuses following changes to UK laws introduced last year. The bank said this would give "greater flexibility" and was closer to what happens in other big financial centres such as Singapore and New York. Bonuses were limited to twice basic pay in a move introduced by the EU in 2014. Other big banks are thought to be considering a similar moves. The limit on bankers' bonuses was introduced by the EU in 2014 despite British opposition, to try to discourage the kind of excessive risk-taking that contributed to the 2008 great financial crisis. Critics argued that banks were able to get round it by simply increasing base salaries. This then made it harder to reduce salaries when bankers performed badly, or claw back pay if misconduct came to light. When it brought in the changes, the Financial Conduct Authority said the change should remove these "unintended consequences". The decision was first announced by Kwasi Kwarteng during his brief stint as chancellor in 2022, in a bid to boost the competitiveness of London as a financial centre. Banks have argued that the bonus cap makes it harder to attract talent from the US and Asia to the UK. Goldman Sachs said in a statement: "This approach gives us greater flexibility to manage fixed costs through the cycle and pay for performance. It brings the UK closer to the practice in other global financial centres, to support the UK as an attractive venue for talent." A number of other banks have reportedly been reviewing their pay policies in the light of the changes. When the decision to remove the bonus cap was announced last year, the Trades Union Congress general secretary Paul Nowak called it an "insult to working people" when "millions up and down the country are struggling to make ends meet." The change will not be universally welcomed by bankers, some of whom prefer to receive more of their income as guaranteed basic pay rather than bonuses which depend on their performance. News credit BBC News #news #technews #dailynews #viralnews #fintech #finance

Investment banks are struggling to overhaul the way they pay top bankers in the UK six months after the government lifted a long-standing bonus cap put in place to curb excessive risk-taking in the aftermath of the 2008 financial crisis. Lawyers and compensation experts within top banks say that so-called role-based allowances remain a key sticking point as banks look to shake up their compensation structures for the first time in a decade. https://lnkd.in/gY3Htpfe

Rt Hon Rachel Reeves should be delighted with the prospect of increased bonuses to bankers. The top 1% of earners pay around 30% of all income #tax. Removing the cap on bonuses in the banking sector means 47% of any increase goes straight to HM Treasury (#tax plus #NIC). Between 1999 and 2011, roughly 2/3 of the increase in the salaries of the top 1% earners went to bankers, through the bonus mechanism. Perhaps this is why bankers bonuses are politically acceptable again, whereas the private equity carried interest is #taxed at #cgt rates and is far less lucrative for the government. Crowe UK Crowe Global

The 2024 Investment Banking Compensation Study provides valuable insights into industry-wide compensation trends. Base salaries remain relatively standard across levels, with bonus structures varying by bank type and region. Canadian banks are known for their predictability and higher deferral rates, while middle market banks offer more variable structures. In New York, bonuses are the highest, while Northern California focuses on technology roles with competitive compensation. Technology and FIG groups show high volatility and satisfaction challenges, with early signs of retention risks in certain sectors. #investmentbanking #compensationstudy #bankingtrends #2024bonusseason. https://lnkd.in/eMe47afS

Unemployment, a recession rebound? SME appetite for expansion, the inflation basket, HMRC clawing back R&D relief, anti money laundering, insolvencies & more business news that we thought would interest our members. https://lnkd.in/eQJix25P #businessNews #creditmanagement #finance #smallbusiness #latepayment #insolvencies #economy