Deutsche Bank gives its investment bankers in New York a hefty raise.
Young analysts are expected to earn $ 100,000 in their first year of employment and $ 105,000 in their second year.
That is 15,000 dollars more than before and corresponds to a salary increase of almost 18 percent.
The salaries of analysts who will be promoted to the associate level in the middle of the year will be increased by 25,000 to 150,000 dollars.
In the rest of the world, analyst and associate compensation is expected to increase by a similar percentage.
A corresponding report by the Bloomberg news agency was confirmed to the FAZ on Wednesday in financial circles.
A spokesman for the bank did not want to comment.
Wage claim rejected
Editor in business.
Follow I follow
The sharp rise in wages for the investment bankers comes at a time when collective bargaining is in progress for a large part of the bank's German employees. The Verdi union is demanding, among other things, 4.5 percent more wages, which the employers' associations immediately rejected as unrepresentable. "The banks will remain under pressure on the cost and income side for years to come, and we are currently dealing with more risks and uncertainties than we have for a long time," said the negotiator Sabine Schmittroth, Commerzbank's Chief Human Resources Officer.
This shows once again the two worlds that Deutsche Bank boss Christian Sewing has to bring under one roof in the group.
On the one hand, the investment bankers in New York, London and Singapore, who are providing the bank with brilliant profits, especially in the Corona period, thanks to the booming bond business, and on the other hand, the German private customer business, which is struggling because of the low interest rates, the income to keep it reasonably stable.
Most income millionaires
The discrepancy was only revealed once again this spring: While the employees in the call center were on strike for several weeks, among other things for a 13th month salary that is common in the bank, the remuneration report published in March showed that the bank had more employees with a million-dollar salary pays than any other European bank. 684 employees received more than one million euros last year. Bank boss Sewing alone got 46 percent more salary than in the previous year.
With the wage increase in New York that has now become known, the bank is following a trend, according to Bloomberg, and is bringing the amounts back to a level similar to that of the competition. Several competitors of Deutsche Bank in New York such as the American Citigroup and the British bank Barclays have raised the salaries of their junior bankers in the past few weeks. The report fits in with the argument regularly put forward by the bank, according to which it only wants to be “competitive” in the battle for talent with the high salaries for the investment bankers. The salary increases are to be distributed during the upcoming six-month pay round. Formal communication won't take place until next month, but the changes will take effect from July 1st.Keywords: