In its latest study, Emolument.com analysed salaries from 338 recent graduates starting their banking career in banking. M&A, sales and trading are the highest paying jobs. Results also show that PhDs and MBAs can give a significant boost to first paycheck.
2017 Analyst salaries
|Job||2017 Starting salary|
|Middle & Back office||£37,000|
- Not a bad start: At £50,000, some starting salaries at investment banks are more than twice the average City graduate paycheck (£24,000 according to our data). The workload however is also likely to double that of most jobs.
- A long lasting gap : The pay gap between revenue-generating employees such as traders, and support staff stands at £13,000 initially, but will gape even further once bonuses kick in.
2017 Analyst salaries
|Degree||2017 Starting salary|
|Masters in Finance||£45,000|
|Masters in Science||£45,000|
|Bachelor of Science||£41,000|
|Bachelor of Arts||£33,000|
- Science > Art : Graduates with a BSc degree start their banking career with a 20% higher salary than those with a BA (£41,000 vs. £33,000), as they are likely to be the most desirable graduates on the market and therefore poached by best paying institutions.
- Extra years are worth it… At £75,000, PhD and MBA holders have a substantially higher starting salary than those with only a bachelor degree as whatever their field of expertise, they jump ahead of their undergraduate peers by joining as Associates, one level up from Analyst.
- … If you choose wisely : The benefits of some postgraduate degrees such as a Master in Finance or Science are unclear, as they only earn an extra 9% more than a BSc graduates. Considering the cost of obtaining such a qualification, short-term return on investment is not attractive.
Alice Leguay, co-founder & CMO at Emolument.com said:
‘Across Europe, the UK stands apart in its graduate recruiting practice, often offering sought-after analyst positions to some who have no financial knowledge or skill. Embarking on a 2-year programme of learning and rotations, analysts are a cost to banks and a drain on their manager’s time and resources. Analysts are let loose on trading floors, sometimes having to teach themselves finance from scratch in their spare time. On the continent, financial institutions recruit graduates who can hit the ground running, and would not consider history or languages majors. UK employers should be praised for their long-term view, which helps promote diverse backgrounds and skill sets.’