Bankers Poised For Another Big Comp Boost

Heavy mergers and acquisition activity will likely boost total compensation for investment bankers by another 25% this year, on top of the 20% they received in 2005.

Heavy mergers and acquisition activity will likely boost total compensation for investment bankers by another 25% this year, on top of the 20% they received in 2005, according compensation consultant Johnson Associates. Bankers in “hot” sectors such as energy could see pay packages zoom 50%. The M&A activity – already up 46% over a year ago – helped fuel investment bankers’ pay packages, which have climbed about twice as fast as those of brokers and fixed-income professionals, 20% vs. 10%. This year fixed-income professionals are expected to see a 5% to 10% pay increase, while private client professionals can expect a raise of 10% to 15%.