Salaries for new recruits have been raised to around between £45,000 and £50,000 a year at the top investment banks – a 5pc rise from last year in reflection of the “reputational issues” around City firms.
The rise is on top of a big jump in starting salaries at the banks last year as the “social stigma” of working for a bank rises again.
Jon Terry, partner at PricewaterhouseCoopers who advises all the top banks on pay levels, said: “There is no doubt that \’banker bashing’ and the scandals at the banks are impacting graduate decisions about going into the City. The importance of reputation seems to have gone up tremendously. Investment banks are generally paying around 5pc more this year, even though investment banking graduates are paid far more than other graduates.”
The more the student unions spout off about how they hate banking the more the new recruits into banking get paid.
It\’s just as Adam Smith said, eh? When you add everything in together, the hours, the shittiness of the job, the reputation good or bad, then all jobs pay the same amount. Lower the reputation and the cash element goes up.
Not quite what the student Trots really wanted to happen but then unintended consequences and all that….