Several banks have released their bonus numbers providing an early glimpse into industry-wide comp trends. This year’s study will capture comprehensive bonus data by bank type, title, group, geography – with the resulting detailed analysis exclusively available to survey participants. Please consider clicking below to participate and share and like so we can get accurate data.
- Analysts should go ahead and participate now and include comp numbers paid out in summer 2024 since they are typically paid on a different cycle.
- The survey will remain open to accommodate professionals from institutions announcing later, including elite boutiques, ensuring all market participants have an opportunity to contribute and access the final market-wide report.
- Please wait until you receive your actual numbers to answer the survey.
As we enter the 2024 bonus season, early data and market intelligence are providing crucial insights into compensation trends across the investment banking sector. Our analysis of recent compensation data reveals significant shifts in bonus structures, regional variations, and emerging industry patterns that will likely shape the upcoming bonus season.
Base Compensation Trends
The investment banking sector continues to maintain relatively standardized base salaries across levels:
- Analysts: $110,000-$140,000
- Associates: $175,000-$225,000
- VPs: $250,000-$275,000
- Directors: $275,000-$300,000
- Managing Direction $300,000-$400,000+
Bonus Expectations by Bank Type
Canadian Banks
Canadian banks are emerging as the most structured players in the market, with some notable characteristics:
- More predictable bonus pools
- Higher deferral rates (21-30% standard)
- Conservative approach with longer garden leave requirements
- More stable year-over-year changes
Middle Market Banks
Middle market institutions show different patterns:
- More variable bonus structures
- Generally no deferrals
- More aggressive in certain sectors (especially Healthcare and Tech)
- Shorter garden leave requirements
- Higher volatility in year-over-year changes
Regional Variations
New York Market
- Maintains position as highest-paying market
- Most competitive bonus structures
- Highest total compensation packages across all levels
- Standard base salaries with significant bonus upside
Northern California
- Technology-focused roles showing competitive compensation
- Base salaries matching New York levels ($175,000-$200,000 for Associates)
- Different bonus structures, particularly in tech-focused groups
- Strong competition from tech sector affecting bonus levels
Other Regions
- 10-20% discount to New York compensation levels
- More stable bonus structures
- Lower variation in year-over-year changes
Industry Group Trends
Technology
- Highest volatility in bonus changes
- Significant dissatisfaction despite high compensation
- High potential for rapid advancement
- Strong lateral movement expectations
Financial Institutions Group (FIG)
- Higher total compensation packages
- Larger deferral portions
- More structured bonus progression
- More stable year-over-year changes
Healthcare
- Stable year-over-year bonus changes
- Lower satisfaction scores despite stability
- Consistent bonus structures
- Strong middle market presence
Restructuring
- Higher base salaries
- More variable bonus structures
- Strong performance-based component
- Higher retention challenges
Early Warning Signs
Retention Risks
- 80% of those experiencing compensation decreases are considering moves
- Technology and Restructuring groups showing highest dissatisfaction
- Recently promoted individuals showing surprising mobility
- Bonus increases below peer average leading to retention risks
Clawback Provisions
- Increasing use across larger institutions
- Full bonus clawbacks becoming more common
- Question of effectiveness as retention tool
- Varying implementation across institution types
Looking Ahead
Early indicators suggest a mixed bonus season ahead. While some sectors and institutions are maintaining or increasing compensation levels, others are showing more conservative approaches. The increased use of deferrals and clawback provisions indicates a shift toward longer-term compensation structures, though their effectiveness in retention remains questionable.
Key factors to watch:
- Technology sector volatility
- Regional compensation gaps
- Deferral rates at Canadian banks
- Middle market competitive positioning
- Boutique bank bonus structures
As the bonus season progresses, we expect to see continued variation across sectors and institution types, with particular attention to retention strategies in high-turnover groups. The effectiveness of traditional retention tools like deferrals and clawbacks may face increasing scrutiny as employee priorities continue to evolve.
