2. 2
1. Introduction
Our annual review of City compensation trends during
2014 and the outlook for 2015.
This second report in our Life Working series for 2014/5, explores the evolving nature of pay
and bonuses on offer in the City.
The research for this year’s report was undertaken by online survey between 16th October and
3rd November 2014. Requests to participate in the survey were sent to 27,710 candidates and
clients of Astbury Marsden. A total of 1,468 responses were received and analysed to compile
the final report.
The information and data contained in this report are for information purposes only and
are not intended, nor implied to be a substitute for professional advice. In no event will
Astbury Marsden be liable to you or any third party for any decision made or action taken in
reliance of the results obtained through the use of the information and/or data contained or
provided herein. Please consider that the responses given are based on the respondents
interpretation of the question and response options.
If you have questions regarding the survey or the report please contact:
Adam Jackson
+44 (0)20 7065 1185
adam.jackson@astburymarsden.com
3. 3
2. Summaryof
findingsThe most significant insights and trends identified in this
year’s research.
There has always been an ardent interest
in the pay and lifestyle of city workers,
whether that is the well documented ‘City
Boy’ lifestyle of old or the strictly regulated
bankers of today. With increasing
government pressure on compensation,
we look at how City workers attitudes
towards pay and bonuses have changed
this year.
Base Salary
At the salary level, we saw the average
base rise by 8% to £96,458 with median
basic pay 6% higher, at £85,000. This is
the first increase to median pay that we
have seen since 2011, suggesting that the
City is finally seeing the light at the end of
the tunnel.
However, whilst the City as a whole is
looking positive, the battle of equal pay
for women is still on. When looking at
the differences in men and women’s pay,
we found that on average, women’s basic
salary is just 84% of their male colleagues.
In addition, whereas last year, women
received a higher pay rise when changing
jobs or receiving a promotion, this year,
men are seeing their pay rise more quickly.
Bonus Expectations
Expectations of receiving a bonus are
slowly rising with two thirds anticipating
receiving a payment, a 5% increase on
last year. In addition, 40% are expecting
to see a rise; this is 6% more than last
year. However, we have also seen a small
increase in those who expect to see a
reduction in their bonus. With a decrease
in those who are ‘unsure’, this could
indicate a more realistic perspective as
compensation becomes more stabilised
following increased regulation and a
settling of the market.
Next Year
When looking at next year’s pay,
respondents are far more positive, with
5% more than last year expecting their pay
to go up. However when looking on a job
level basis, the report shows that the more
senior the respondent, the less confident
they are about receiving a pay rise. The
most confident are at the Associate/
Manager level with almost two thirds
expecting to receive a pay increase. By
stark contrast, just one third of Managing
Director/Partner level employees think
they will see their salary increase in 2015.
4. 4
But what if expectations are not met?
How will employees react? This year,
over half of responses were to move roles
if they were not happy with their bonus.
This suggests that city workers are more
confident in the job market than they have
been in previous years.
Only time will tell.
I hope you find the report interesting.
Adam Jackson
Director
5. 5
3. BasicPay
This year, the average salary across the City was £96,458, a further rise of 8% on 2013. Median basic
pay was £85,000, a 6% increase on last year.
During the year, 62% saw an increase in pay, a sharp increase on the last 3 years which saw less than
half experiencing a rise in their base salary. Just less than 3% received a decrease. This is in line with
previous years.
Exploring changes to employee’s base salary over
the last year.
Overview
Fig 3.1
Changes to basic pay 2014 2013 2012 2011
Respondents receiving an increase 61.8% 47.0% 45.2% 44.0%
Respondents receiving an decrease 2.9% 3.1% 3.6% 1.2%
3.1.1 Recipients of pay changes
Increases in pay were made up of the following:
• 21% of respondents were promoted during the year. (Fig 3.1.2). Those promoted received just over
a 19% increase in basic pay, a rise on the prior year.
• 24% of city staff changed jobs (Fig 3.1.3), 4% less than last year. By changing employers you could
expect to receive a 17% increase to your pay. This represents a small rise on 2013.
• Just over 6% of respondents changed jobs and received a promotion and in return received on
average 28% increase in pay.
• 61% of employees neither changed employers nor were promoted, these staff saw their basic pay
rise by 5%.
6. 6
3.1.2 Changes to pay as a result of promotion
3.1.3 Changes to pay as a result of changing employers
Average of 15.4% increase
for those who were promoted
Average of 5.5% increase
for those who were not
Average of 5.4% increase
for those who were not
Average of 13.5% increase
for those who changed jobs
Average of 14.7% increase
for those who were promoted
Average of 11.5% increase
for those who changed jobs
Average of 5.3% increase
for those who did not
Average of 5.1% increase
for those who did not
“The average salary
across the City in
2014 was £96,458”
Average of 18.9% increase
for those who were promoted
Average of 6.5% increase
for those who were not
Average of 16.5% increase
for those who changed jobs
Average of 6.6% increase
for those who did not
7. 7
Drilling into the results and looking at average pay differences based on job level we see the following:
Female Male
Female salary as a
percentage of males
Analyst/Executive £43,701 £58.905 74%
Associate/Manager £60,355 £64,806 93%
Assistant Vice President £66,688 £76,046 88%
Manager £62,354 £76,504 82%
Vice President/Senior Manager £93,001 £99,049 94%
Director/Executive Director £137,471 £126,780 108%
Managing Director/Partner £145,000 £213,421 68%
Other £86,693 £93,765 92%
Gender
Fig 3.2
3.2.1 Impact on pay of changes in circumstance
Men changing jobs or receiving promotions, saw their pay rise more quickly than women. This was also the case when they decided to
stay in their current role with the same employer.
Gender
Changed Jobs
2014
Promoted
2014
No Change
2014
Male 16.8% 20.1% 5.2%
Female 15.4% 14.1% 2.7%
3.2.2 Pay equality
According to the survey, women earn 84%
of the average basic salary for men.
This is a 6% increase on last year, however
there is still come way to go before women
and men’s earnings are equal.
Average Median
8. 8
JobLevel
Fig 3.3
Job Level
Impact on Pay
Changed jobs Promoted No Change
2014 2013 2014 2013 2014 2013
Analyst/Executive 18.0% 17.7% 16.5% 23.7% 7.3% 8.5%
Associate/Manager 13.3% 19.3% 13.3% 18.1% 2.7% 5.6%
AVP 27.7% 16.6% 21.2% 14.5% 5.0% 3.6%
Manager 14.2% 14.4% 20.7% 17.1% 3.9% 3.6%
Vice President/Senior Manager 14.5% 12.2% 14.5% 12.2% 3.8% 2.0%
Director/Executive Director 17.9% 11.3% 25.1% 13.8% 3.7% 2.7%
Managing Director/Partner 19.1% 29.4% 26.1% 16.7% 5.9% 1.4%
Other 15.7% 14.0% 16.1% 15.1% 7.1% 3.0%
3.3.1 Impact on pay of changes in circumstance
When changing jobs, AVP level staff expect to see the largest increases in basic pay. This contrasts significantly with the increases
experienced by the AVP’s who were promoted or did not change jobs; these individuals received the smallest increases of any level.
Promotions at the senior end were the most fruitful but those at the most junior end received the highest increases without a
promotion or a job change.
Job Level
Median Salary Average Salary
2014 2013 Variance 2014 2013 Variance
Analyst/Executive £50,000 £45,000 11.1% £55,319 £52,017 6.3%
Associate/Manager £60,000 £55,000 9.1% £63,846 £61,007 4.7%
AVP £70,000 £68,375 2.4% £75,210 £68,139 10.4%
Manager £72,000 £68,250 5.5% £74,089 £69,120 7.2%
Vice President/Senior Manager £95,000 £87,250 8.9% £97,859 £91,545 6.9%
Director/Executive Director £125,000 £120,000 4.2% £128,167 £118,438 8.2%
Managing Director/Partner £192,500 £175,000 10.0% £208,289 £191,011 9.0%
Other £80,000 £72,000 11.1% £92,168 £84,004 9.7%
3.3.2 Shifts in median and average salaries
Median pay for Analyst/Executive level staff grew the fastest in the year with an increase of 11%. On an average basis, AVP level pay
was the quickest rising by 10%.
Average and median salaries increased across all job levels this year.
9. 9
Function
Fig 3.4
3.4.1 Impact on pay of changes in circumstances
This year, staff working in Compliance experienced the largest increases in pay as a result of changing jobs or a promotion. This
demonstrates continued demand for the skillset over the last year.
Revenue Generators and Sales & Distribution staff received over 14% more pay without changing jobs or being promoted. This is a
positive change for Sales and Distribution staff who received a 1% decrease last year.
Function
Impact on Pay
Changed jobs Promoted No Change
2014 2013 2014 2013 2014 2013
Administration 18.1% - 30.0% - 5.9% -
Compliance 36.9% 26.8% 32.2% 19.5% 3.7% 5.1%
Finance 11.2% 21.5% 10.8% 15.3% 2.8% 2.5%
HR 23.4% 22.4% 12.7% 18.7% 2.6% 14.7%
Internal Audit 20.8% 33.3% n/a 22.2% 4.4% 3.7%
Operations &
Middle Office
19.9% 12.4% 24.4% 20.3% 4.1% 3.0%
Revenue
Generator
2.3% 11.0% 7.0% 14.0% 15.1% 3.1%
Risk & Governance 14.2% 15.2% 17.4% 13.6% 3.6% 8.0%
Sales & Distribution 13.8% 11.0% 14.8% 22.0% 14.1% -1.0%
Strategy & Change 21.1% 19.3% 18.5% 22.5% 4.1% 4.4%
Technology 12.6% 13.4% 23.4% 15.6% 3.2% 3.4%
Other 19.7% 11.6% 28.1% 13.2% 4.4% 3.7%
10. 10
Function
Median Salary Average Salary
2014 2013 Variance 2014 2013 Variance
Administration £58,000 £52,500 10.5% £85,500 £75,125 13.8%
Compliance £70,675 £67,750 4.3% £87,292 £77,567 12.5%
Finance £76,500 £73,500 4.1% £80,753 £76,833 5.1%
HR £69,200 £65,000 6.5% £79,131 £75,185 5.2%
Internal Audit £87,000 £75,000 16.0% £58,500 £77,333 10.6%
Operations &
Middle Office
£65,000 £60,000 8.3% £74,556 £68,809 8.4%
Revenue
Generator
£125,000 £110,000 13.6% £124,509 £97,496 27.7%
Risk & Governance £88,250 £82,000 7.6% £96,630 £113,278 -14.7%
Sales & Distribution £80,500 £71,250 13.0% £94,545 £90,790 4.1%
Strategy & Change £102,500 £94,500 8.5% £122,539 £80,816 51.6%
Technology £90,000 £83,000 8.4% £94,027 £111,964 -16.0%
Other £87,500 £85,000 2.9% £106,198 £89,193 19.1%
3.4.2 Shifts in median and average salary
Internal Audit staff saw their median income rise the fastest at a rate of 16%. On an average basis, Revenue Generators and Strategy
and Change employees saw their pay rise the fastest.
In contrast Technology and Risk & Governance functions saw a decrease in their average salary this year.
11. 11
Sector
Fig 3.5
3.5.1 Impact on pay and changes in circumstances
On a sector level there were some stark contrasts. The greatest impact on pay for those changing jobs in 2014 was experienced by
ratings agencies at 83%. However, those in private equity experienced a 7% decrease.
Those in corporate broking and stockbroking received a 43% increase in pay on promotion. However those in private banking &
wealth management experienced just a 7% increase. For those who remained loyal to their employer, without a promotion or a job
change, the highest increase in pay was in commodity trading. Corporate broking and stockbroking received no change.
Sector
Changed Jobs Promoted No Change
2014 2013 2014 2013 2014 2013
Commodity Trading 5.7% 18.5% 10.7% 25.7% 10.4% 1.4%
Consulting 13.2% - 13.1% - 4.5% -
Corporate Broking &
Stockbroking
42.9% 0.9% 42.9% 17.0% 0.0% 0.0%
Exchanges & Trading
Platforms
25.6% 12.2% 34.1% 19.6% 3.6% 3.2%
Fund Services 15.9% 12.0% 8.6% 12.9% 4.7% 3.8%
Insurance 12.2% 19.0% 19.7% 15.9% 5.4% 5.1%
Investment Banking 22.3% 14.1% 22.6% 15.5% 6.2% 2.8%
Investment Management 8.6% 13.5% 12.0% 14.2% 4.9% 3.8%
Non Financial Services 18.6% 18.5% 31.7% 19.8% 1.5% 5.6%
Payments, Clearing,
Custody & Counterparty
10.8% 3.2% 21.7% 18.3% 1.8% -1.7%
Private Banking & Wealth
Management
27.3% 17.8% 7.2% 13.5% 3.4% 3.7%
Private Equity -6.9% 5.3% 10.9% 12.5% 5.6% 4.3%
Ratings Agencies 83.1% 9.6% 21.0% 11.9% 2.9% 0.5%
Regulators 15.2% 27.6% - 8.7% 1.7% 3.3%
Retail Banks & Building
Societies
7.0% 14.4% 14.3% 11.2% 3.3% 14.3%
12. 12
Sector Median Salary Average Salary
2014 2013 Variance 2014 2013 Variance
Commodity Trading £78,000 £75,000 4.0% £94,947 £87,289 8.8%
Consulting £98,500 £91,600 7.5% £120,853 £111,189 8.7%
Corporate Broking &
Stockbroking
£60,000 £60,000 0.0% £77,200 £73,600 4.9%
Exchanges & Trading
Platforms
£82,500 £80,000 3.1% £91,518 £87,901 4.1%
Fund Services £68,825 £65,500 5.1% £74,346 £70,893 4.9%
Insurance £76,500 £70,000 9.3% £85,857 £80,312 6.9%
Investment Banking £91,000 £83,000 9.6% £99,534 £91,456 8.8%
Investment Management £90,000 £85,000 5.9% £92,129 £87,254 5.6%
Non Financial Services £69,200 £65,000 6.5% £82,954 £75,575 9.8%
Payments, Clearing,
Custody & Counterparty
£67,500 £65,000 3.8% £81,660 £75,540 8.1%
Private Banking & Wealth
Management
£80,000 £71,300 12.2% £90,685 £85,332 6.3%
Private Equity £125,000 £125,000 0.0% £126,625 £117,156 8.1%
Ratings Agencies £86,750 £81,000 7.1% £97,125 £81,400 19.3%
Regulators £70,000 £60,000 16.7% £71,327 £68,000 4.9%
Retail Banks & Building
Societies
£95,000 £90,000 5.6% £97,933 £92,881 5.4%
3.5.2 Shifts in median and average salaries
For the second year in a row, median pay for regulators grew the sharpest in the year rising by 17%, followed by private
banking & wealth management where pay rose by 12%. Ratings agencies saw average pay grow by 19% with the lowest growth
seen for exchanges and trading platforms.
13. 13
4. Bonus
Expectations
A look at sentiment towards bonus payments for the
current year.
Overview
Fig 4.1
Overall bonus expectations
have increased this year
with 66% expecting a
bonus - a 5% increase on
last year.
4.1.1
Overall bonus expectations
4.1.2
Expectation of change in bonus
This year, 40% of
respondents are expecting
an increase in their bonus
compared to 34% last
year. However, 16% are
expecting a decrease, which
is 3% more than last year.
14. 14
Gender
Fig 4.2
This year, the average expected bonus for men is almost double that which is expected by women.
However, the bonus as a percentage of average salary has increased for both sexes by just over 8%.
Gender
2014 2013
Average Bonus % Average Salary
% Expecting a
bonus
Average Bonus % Average Salary
Female £17,429 26.3% 78.1% £14,996 17.9%
Male £32,080 40.0% 78.8% £26,674 31.9%
Prefer not to say £7,500 11.3% 66.7% £9,000 10.8%
TOTAL £29,437 37.9% 78.6% £24,573 29.4%
JobLevel
Fig 4.3
Job level
2014 2013
Average bonus
% Average
Salary
% Expecting a
bonus
Average
bonus
% Average
Salary
Analyst/Executive £6,411 11.6% 71.3% £4,008 7.7%
Associate/Manager £10,298 16.1% 77.4% £9,725 15.9%
AVP £8,330 11.1% 76.6% £6,468 9.5%
Manager £21,239 32.3% 80.6% £20,505 29.7%
Vice President/Senior Manager £23,961 24.5% 89.2% £20,405 22.3%
Director/Executive Director £55,354 43.2% 82.8% £43,135 36.4%
Managing Director/Partner £124,680 59.9% 81.4% £102,930 53.9%
Other £5,440 5.9% 47.0% £7,441 8.9%
TOTAL £29,437 30.5% 78.6% £24,573 27.5%
In line with last year, bonus expectations rose for all levels. Managing Director/Partner level staff expected
the highest bonus at an average of £124,680, 60% of average salary.
Female Male Percentage
Analyst/Executive £2,721 £7,384 36.8%
Associate/Manager £9,509 £10,505 90.5%
Assistant Vice President £21,000 £6,697 313.9%
Manager £7,542 £24,447 30.8%
Vice President/Senior Manager £17,921 £25,452 70.4%
Director/Executive Director £42,059 £57,319 73.4%
Managing Director/Partner £120,000 £125,040 96.0%
Other £2,867 £6,244 45.9%
TOTAL £17,429 £32,080 54.3%
Looking at the comparatives based on gender and job level:
15. 15
Function
Fig 4.4
Function
2014 2013
Average
Bonus
% Average
Salary
% Expecting a
bonus
Average
Bonus
% Average
Salary
Administration £22,375 26.2% 75.0% £21,531 28.7%
Compliance £14,674 16.8% 83.3% £11,582 14.9%
Finance £23,772 29.4% 83.6% £19,774 25.7%
HR £17,046 21.5% 80.8% £13,446 17.9%
Internal Audit £19,538 22.9% 92.3% £18,488 23.9%
Operations & Middle Office £15,609 20.9% 70.7% £14,781 21.5%
Revenue Generator £91,609 73.6% 81.0% £81,683 72.1%
Risk & Governance £24,079 24.9% 92.7% £22,374 24.6%
Sales & Distribution £38,116 40.3% 79.6% £34,235 42.4%
Strategy & Change £47,387 38.7% 86.2% £27,018 24.1%
Technology £18,098 19.2% 77.9% £15,770 17.7%
Other £45,455 42.8% 72.9% £40,981 42.0%
TOTAL £29,437 30.5% 78.6% £24,573 27.5%
Bonus expectations as a proportion of pay were fairly consistent across most functions when compared to last year.
The highest proportions were found with Revenue Generators who expect to receive 74% of their salary as bonus. Those in Compliance
have the lowest expectations at just 17%.
Over 90% of Risk and Governance and Internal Audit professionals expect to receive a bonus compared to just 71% of Operations and
Middle Office staff.
16. 16
Sector
Fig 4.5
Sector
2014 2013
Average
Bonus
% Average
Salary
% Expecting a
bonus
Average
Bonus
% Average
Salary
Commodity Trading £30,547 32.2% 87.0% £25,958 0.3%
Consulting £27,822 23.0% 77.4% £22,709 0.2%
Corporate Broking &
Stockbroking
£14,000 18.1% 83.3% £8,500 11.5%
Exchanges & Trading
Platforms
£27,594 30.2% 81.8% £20,078 22.8%
Fund Services £7,184 9.7% 70.0% £7,211 10.2%
Insurance £14,486 16.9% 77.9% £14,799 18.4%
Investment Banking £27,301 27.4% 76.9% £23,663 25.9%
Investment Management £63,117 68.5% 81.2% £61,704 70.7%
Non Financial Services £36,151 43.6% 77.2% £12,857 17.0%
Payments, Clearing,
Custody & Counterparty
£18,131 22.2% 79.2% £16,371 21.7%
Private Banking & Wealth
Management
£24,167 26.6% 76.0% £19,604 23.0%
Private Equity £145,625 115.0% 100.0% £117,125 100.0%
Ratings Agencies £19,125 19.7% 100.0% £18,500 22.7%
Regulators £3,246 4.6% 61.5% £4,731 7.0%
Retail Banks & Building
Societies
£20,533 21.0% 90.0% £19,807 21.3%
TOTAL £29,437 30.5% 78.6% £24,573 27.5%
The highest bonus expectations were held by staff working in Private Equity at £145,625. The lowest expectations are with Regulators,
and Fund Services firms.
In addition, all Private Equity and Ratings Agency employees are expecting to receive a bonus compared to just 62% of Regulators.
17. 17
5. Expectations
&Reactions
The sentiment of City staff towards pay prospects for
2013.
Overview
Fig 5.1
Gender
Fig 5.2
Half of respondents
this year, believe that
they will receive a pay
increase in 2015. This
is a small rise on last
year’s findings.
Both men and
women have similar
expectations towards
pay increases in 2015,
with women just slightly
more optimistic than
men.
5.1.1 Expectation of salary increase
5.2.1 Expectation of salary increase
18. 18
JobLevel
Fig 5.3
There is a stark contrast
between the different levels
in terms of expecting a
pay increase. Nearly three
quarters of Associate/
Manager staff expect a pay
rise in 2015, compared to
just one third of Managing
Director/Partner level
employees.
Function
Fig 5.4
Operations & Middle Office
and HR staff were the
least optimistic about pay
prospects for the coming
year. Compliance and
Strategy & Change staff are
the most optimistic.
19. 19
Sector
Fig 5.5
Payments, Clearing, Custody & Counterparty, Commodity Trading, Ratings Agencies and Non Financial Services are the most
optimistic sectors.
Corporate Broking & Stockbroking, Private Equity and Regulators expect continued pay pressure in the coming year.
20. 20
BonusDissatisfaction
Fig 5.6
5.6.1 Action taken if dissatisfied with bonus payment
This year we have seen the biggest increase in those who would change roles as a result of a poor bonus to the highest levels since the
survey began.
Employees are more interested in moving overseas when compared to last year, but this has not returned to the levels experienced in
2011.
This year we have seen the highest level of employees who would take no action if they are not happy with their bonus. This suggests
that employees are becoming more accustomed to a lower bonus than they have done previously.
21. 21
Market Insight
Where do you expect the most new financial services jobs to be
created in the next year?
1
London (45%)
2Singapore (14%)
3
Shanghai (12%)
5=
Hong Kong (8%)
UAE (8%)
7
Kuala
Lumpur(4%)
4New York (9%)
22. 22
In which location would you prefer to work?
1
London (70%)
2New York (12%)
3
Singapore (7%)
4=
Hong Kong (4%)
UAE (4%)
7
Shanghai(1%)
6
Kuala
Lumpur (2%)
23. 23
AboutAstbury
Marsden
We specialise in recruiting uniquely talented people in business technology, business
transformation, regulatory and assurance functions and specialist technical skills.
We intimately understand the dynamics of the financial services, energy and
professional services markets; making sure we know the people our clients need to
occupy critical roles throughout their business. We help clients determine the people
they need and then we find the best of them.
We have a global perspective and we are territory-neutral. We look for market
identifiers that we recognise, and apply our experience and intelligence to solve the
challenges they face. Our regional hubs established in London and Singapore allow
us to serve our clients across EMEA and throughout Asia.
You can find more out at www.astburymarsden.com
Singapore
Mark O’Reilly
Singapore Land Tower,
50 Raffles Place,
Singapore 048623
+65 6829 7122
London
Adam Jackson
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+44 (0)20 7065 1222
