The standard bump of at least 10% that executives could expect by defecting to a competitor has probably doubled. Competition is particularly fierce for people who can help banks diversify their ranks. The more progressive companies have lifted traditional ceilings on compensation to ensure they can lead the pack.
Jane Street raised its base pay for traders globally by at least 20% amid surging inflation and competition for quantitative financial talent.
The New York-based quant-trading firm communicated the increase to employees in recent weeks, according to people with knowledge of the matter. Beyond base pay, traders in such positions also receive a significant portion of their compensation in bonuses.
On Wall Street, job-hopping has been accelerating even before the bonus season, and employers are paying up to retain staff. During the most recent earnings calls, bank executives warned that compensation costs will rise in 2022. JPMorgan Chase & Co. CEO Jamie Dimon vowed to pay whatever it takes to win the war for talent, naming companies such as Jane Street and Citadel as competitors. Fintech and crypto firms also are poaching talent from the traditional financial industry.
In New York’s hub, almost a quarter of financial-services firms are planning to reduce their workforces in the city within the next half-decade, according to a survey published this week by Partnership for New York City. At least some of those jobs are being moved to cheaper locales, such as Florida and Texas.
For now, industry veterans examining their options have found they have more alternatives than before. A growing number of financial-technology companies, crypto-currency ventures and so-called blank-check companies are interested in enlisting their experience.
Pay raises in the range of 20% or more are not uncommon. Earlier this year, Bank of America Corp. boosted base salaries for managing directors in its investment banking and markets divisions to $500,000 from $400,000. Barclays Plc said it’s raising wages for some U.S. workers by at least 21%.
In New York’s securities industry, the average bonus jumped 20% last year to an all-time high of $257,500.
