This second report in our Life Working series for 2013/4, explores the evolving nature of pay and bonuses on offer in the City.

1. Report 008
Compensation
Life Working Series 2013/4
1

2. 1.
Introduction
Our annual review of City compensation trends during
2013 and the outlook for 2014.
This second report in our Life Working series for 2013/4, 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 4th and 18th
October 2013. Requests to participate in the survey were sent to 29,914 candidates and clients
of Astbury Marsden. A total of 1,509 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.
If you have questions regarding the survey or the report please contact:
Mark Cameron
mark.cameron@astburymarsden.com
+44 20 7065 1175
Jonathan Nicholson
jonathan.nicholson@astburymarsden.com
+44 20 7065 1221
Cathryn Jowett
cathryn.jowett@astburymarsden.com
+44 20 7065 1187
2

3. 2. Summary of
findings
The most significant insights and trends identified in this
year’s research.
The European Banking Authority, recently
found that the number of UK bankers
earning at least €1 million increased
to more than 2,700 last year, 12 times
more than any other country in the EU.
Despite the outcry this prompted, this
further reinforces London’s dominance as
Europe’s financial centre.
This year’s report investigates the changes
in City workers perspectives and their
attitudes towards pay and bonuses in light
of increasing Government and regulatory
pressures.
Average basic salaries rose 5.6% to
£85,921 in 2013, double the rate of
inflation. Median basic pay was the same
for the third year running at £75,000.
Looking at the growing gender pay debate,
we found that average basic pay for
women was 78% of the pay of their male
colleagues rising to 81% when viewed on
a median basis. However at more junior
levels, much more parity of pay between
the sexes was seen. Women changing jobs
or receiving a promotion saw their pay
grow faster than their male colleagues.
They also saw a pay increase higher than
men when staying with their employer.
Basic pay increased across all job levels
this year with Managing Directors
experiencing a 15% increase in median
pay. Average basic pay rose the fastest at
Analyst and Associate level increasing 11%
and 10% respectively.
Just over 60% of staff are still expecting
to receive a bonus. This is in line with the
2012 expectations. However, in contrast
to previous years where we have seen a
decline in bonus expectations, this year we
saw 67% of respondents expecting to see
no change or an improvement in bonus.
This compares to 60% last year.
In fact, bonus expectations have increased
across most levels except VP where it fell
marginally. In 2012, we saw a much lower
expectation across senior teams than this
year.
When considering pay in 2014, we found
that women are more optimistic in the
coming year. Fewer women expect a
decrease in 2014 than they did in 2013.
Senior level staff are less optimistic
about receiving a pay increase in 2014,
specifically Director and Executive
Director level staff . The least optimistic
sector for pay increases is Corporate
Broking & Stockbroking. At a functional
level, Sales & Distribution staff were the
most optimistic about pay prospects for
2014.
3

4. For the third year running, the primary
reaction to a poor bonus is to try to change
employer, however, this has dropped since
2012 and we have seen a marginal increase
in those who would look for a promotion
with their current employer.
59% of staff believe that the bonus cap
would encourage staff to exit the sector
suggesting that pay is a key driver within
financial services. However perhaps
surprisingly, it was an almost equal split
between those who thought the bonus cap
would disincentivise staff and those who
didn’t.
I hope you find this year’s findings
interesting.
Mark Cameron
Chief Operating Officer
4

5. 3. Basic Pay
Exploring changes to the basic rate of employee
compensation over the last year.
Fig 3.1
Overview
During 2013, the average salary across the City was £85,921, a rise of 5.6% on 2012. Median basic pay
was £75,000 and has not changed since 2011.
During the year, 47% of respondents received an increase, a small rise on 2012. The number who
experienced a cut in pay in 2013 fell to 3%.
3.1.1
Recipients of pay changes
Changes to basic pay
2013
2012
2011
Respondents receiving an increase
47.0%
45.2%
44.0%
Respondents receiving an decrease
3.1%
3.6%
1.2%
Increases in pay were made up of the following:
•
•
•
•
21% of respondents were promoted during the year, a rise of 4% (Fig 3.1.2) on last year. Those
promoted received just over a 15% increase in basic pay, a small rise on the prior year.
28% of city staff changed jobs (Fig 3.1.3), a similar level to the number changing roles last year.
By changing employers you could expect to receive a 13.5% increase to your pay. This represents a
small rise on 2012.
Just over 8% of respondents changed jobs and received a promotion and in return received on
average a 24% increase in pay.
67% of employees neither changed employers nor were promoted, these staff saw their basic pay
rise by 3.9%.
5

6. 3.1.2
Changes to pay as a result of promotion
Average of 15.4% increase
for those who were promoted
Average of 5.5% increase
for those who were not
Average of 14.7% increase
for those who were promoted
Average of 5.4% increase
for those who were not
3.1.3
Changes to pay as a result of changing employers
Average of 13.5% increase
for those who changed jobs
Average of 5.3% increase
for those who did not
Average of 11.5% increase
for those who changed jobs
Average of 5.1% increase
for those who did not
“The average salary
across the City in
2013 was £85,921”
6

7. Fig 3.2
Gender
3.2.1
Impact on pay of changes in circumstance
Women changing jobs or receiving promotions saw their pay rise more quickly than their male counterparts, rising by approximately
20%. When staying with their current employer, they also saw a pay increase higher than men.
Changed Jobs
2013
Promoted
2013
No Change
2013
Male
12.6%
14.8%
3.4%
Female
19.9%
18.0%
4.7%
Gender
3.2.2
Pay equality
While there were more women responding
this year, they were generally more
junior than the men responding. As a
consequence, the average and median pay
may be distorted.
Based on the sample surveyed, average
basic pay for women was 78% of the pay of
their male colleagues rising to 81% when
viewed on a median basis.
Drilling into the results and looking at average pay differences based on job level we see the following:
Female
Male
Percentage
Analyst/Associate
£53,029
£56,684
93%
AVP
£65,219
£68,457
95%
Manager
£65,413
£76,516
85%
Vice President
£90,309
£93,461
97%
Director/Executive Director
£115,115
£139,832
82%
Managing Director
£150,000
£201,679
74%
Other
£64,771
£79,994
81%
TOTAL
£69,796
£88,932
78%
7

8. Fig 3.3
Job Level
3.3.1
Impact on pay of changes in circumstance
When changing jobs, Managing Director level staff could expect to see the largest increases in basic pay. This contrasts significantly
with the increases experienced by Managing Directors who did not change jobs and received an increase of just 1.4%.
Analyst promotions were the most fruitful at 24%. Interestingly those junior level staff not changing jobs or receiving a promotion
received the highest increases in their basic pay.
Impact on Pay
Job Level
Changed jobs
Promoted
No Change
2013
2012
2013
2012
2013
2012
Analyst
17.7%
14.6%
23.7%
16.6%
8.5%
1.8%
Associate
19.3%
12.5%
18.1%
21.1%
5.6%
3.9%
AVP
16.6%
15.9%
14.5%
22.2%
3.6%
1.7%
Manager
14.4%
17.1%
17.1%
19.5%
3.6%
2.3%
Vice President
12.2%
4.0%
12.2%
9.5%
2.0%
3.5%
Director/Executive Director
11.3%
6.2%
13.8%
12.1%
2.7%
3.0%
Managing Director
29.4%
14.7%
16.7%
11.4%
1.4%
2.1%
Other
14.0%
13.5%
15.1%
11.7%
3.0%
11.9%
3.3.2
Shifts in median and average salaries
Median pay for Managing Directors grew the fastest in the year, rising by 15%. On an average basis, Analysts and Associates pay was
the quickest, rising by approximately 11%.
Both average and median salaries fell across all job levels during the year.
Job Level
Median Salary
Average Salary
2013
2012
Variance
2013
2012
Variance
Analyst
£40,000
£37,100
7.8%
£40,844
£36,757
11.1%
Associate
£52,000
£47,000
10.6%
£48,987
£44,563
9.9%
AVP
£61,000
£57,000
7.0%
£55,423
£52,358
7.9%
Manager
£64,800
£58,197
11.3%
£58,105
£54,471
6.7%
Vice President
£84,000
£80,000
5.0%
£77,550
£77,054
0.6%
Director/Executive Director
£115,000
£110,000
4.5%
£106,652
£101,137
5.5%
Managing Director
£150,000
£130,000
15.4%
£145,418
£134,996
7.7%
Other
£52,250
£47,500
10.0%
£55,435
£52,258
6.3%
8

9. Fig 3.4
Function
3.4.1
Impact on pay of changes in circumstances
Staff working in Compliance and Internal Audit experienced the largest increases in pay as a result of changing jobs. Perhaps
reflecting strong demand for the skill set during the year.
Staff working in HR and Risk who chose to remain with their current employer saw the largest increases in their basic pay.
Moving jobs this year proved less lucrative for Sales & Distribution staff when compared to last year. Sales & Distribution staff and
those not changing employers or receiving a promotion saw their pay fall during the year.
Impact on Pay
Function
Changed jobs
Promoted
No Change
2013
2012
2013
2012
2013
2012
Compliance
26.8%
12.8%
19.5%
10.1%
5.1%
8.4%
Finance
21.5%
5.7%
15.3%
12.7%
2.5%
3.3%
HR
22.4%
9.1%
18.7%
19.4%
14.7%
1.8%
Internal Audit
33.3%
14.5%
22.2%
23.3%
3.7%
2.2%
Operations &
Middle Office
12.4%
17.4%
20.3%
11.8%
3.0%
2.1%
Revenue
Generator
11.0%
13.6%
14.0%
14.9%
3.1%
4.4%
Risk
15.2%
8.4%
13.6%
18.3%
8.0%
1.5%
Sales & Distribution
11.0%
35.8%
22.0%
8.7%
-1.0%
13.5%
Strategy & Change
19.3%
12.9%
22.5%
9.7%
4.4%
2.3%
Technology
13.4%
13.2%
15.6%
17.6%
3.4%
5.4%
Other
11.6%
3.3%
13.2%
12.6%
3.7%
1.8%
9

10. 3.4.2
Shifts in median and average salary
Compliance and Revenue Generating staff saw their median incomes rise fastest at a rate of at least 10%. On an average basis,
Compliance and HR staff saw their pay rise the quickest, rising by approximately 13%.
Function
Median Salary
Average Salary
2013
2012
Variance
2013
2012
Variance
Compliance
£80,000
£72,500
10.3%
£80,538
£71,344
12.9%
Finance
£64,800
£60,000
8.0%
£69,190
£69,362
-0.2%
HR
£42,500
£40,000
6.3%
£45,580
£40,301
13.1%
Internal Audit
£71,000
£67,500
5.2%
£61,375
£57,500
6.7%
Operations &
Middle Office
£60,000
£55,000
9.1%
£62,566
£58,727
6.5%
Revenue
Generator
£88,000
£80,000
10.0%
£90,669
£85,454
6.1%
Risk
£60,000
£55,000
9.1%
£65,282
£60,311
8.2%
Sales & Distribution
£75,000
£70,000
7.1%
£84,270
£78,203
7.8%
Strategy & Change
£72,750
£66,950
8.7%
£82,365
£75,844
8.6%
Technology
£65,000
£62,000
4.8%
£64,742
£61,180
5.8%
Other
£48,000
£45,000
6.7%
£59,626
£56,269
6.0%
10

11. Fig 3.5
Sector
3.5.1
Impact on pay and changes in circumstances
The greatest impact on pay for those changing jobs was experienced by those changing jobs into regulators. The sector experiencing
the largest increases in basic pay were retail banks and building societies whose employees saw a 14% rise. For those who remained
loyal to their current employer, without promotion or changing jobs, the highest increase in base pay was in building societies, non
financial services firms and insurers.
Impact on Pay
Sector
Changed Jobs
2013
Promoted
2013
No Change
2013
Commodity Trading
18.5%
25.7%
1.4%
Corporate Broking &
Stockbroking
0.9%
17.0%
0.0%
Exchanges & Trading
Platforms
12.2%
19.6%
3.2%
Fund Services
12.0%
12.9%
3.8%
Insurance
19.0%
15.9%
5.1%
Investment Banking
14.1%
15.5%
2.8%
Investment Management
13.5%
14.2%
3.8%
Non Financial Services
18.5%
19.8%
5.6%
Payments, Clearing,
Custody & Counterparty
3.2%
18.3%
-1.7%
Private Banking & Wealth
Management
17.8%
13.5%
3.7%
Private Equity
5.3%
12.5%
4.3%
Ratings Agencies
9.6%
11.9%
0.5%
Regulators
27.6%
8.7%
3.3%
Retail Banks & Building
Societies
14.4%
11.2%
14.3%
11

12. 3.5.2
Shifts in median and average salaries
Median pay for regulators grew sharpest in the year rising by 16%, followed by private equity, private banking, non financial
services firms and exchanges where pay rose between 12-13%. Regulators also saw average pay grow strongly although retail
banks, and non financial services firm also saw strong average pay growth.
Sector
Median Salary
Average Salary
2013
2012
Variance
2013
2012
Variance
Commodity Trading
£75,000
£70,000
7.1%
£77,254
£73,704
4.8%
Corporate Broking &
Stockbroking
£63,000
£60,000
5.0%
£65,143
£67,310
-3.2%
Exchanges & Trading
Platforms
£56,500
£50,500
11.9%
£61,891
£59,563
3.9%
Fund Services
£54,250
£53,500
1.4%
£52,227
£49,052
6.5%
Insurance
£50,000
£45,000
11.1%
£52,889
£50,427
6.9%
Investment Banking
£76,450
£72,000
6.2%
£77,842
£74,759
4.1%
Investment Management
£65,000
£60,000
8.3%
£66,607
£62,008
7.4%
Non Financial Services
£45,000
£40,000
12.5%
£50,548
£45,167
11.9%
Payments, Clearing,
Custody & Counterparty
£72,750
£74,000
-1.7%
£75,665
£75,296
0.5%
Private Banking & Wealth
Management
£77,500
£68,500
13.1%
£78,096
£72,046
8.4%
Private Equity
£65,000
£57,500
13.0%
£70,045
£66,818
4.8%
Ratings Agencies
£57,000
£57,000
0.0%
£53,500
£50,000
7.0%
Regulators
£90,000
£77,500
16.1%
£79,306
£70,611
12.3%
Retail Banks & Building
Societies
£66,000
£65,000
1.5%
£74,530
£65,973
13.0%
12

13. 4. Bonus
Expectations
A look at attitudes towards bonus payments for the
current year.
Fig 4.1
Overview
4.1.1
Overall bonus expectations
Overall bonus expectations were very similar year on year with just over 60% of respondents
anticipating receiving a bonus.
4.1.2
Expectation of change in bonus
Unlike previous years where bonus expectations have deteriorated further each year, this year we
saw more than two thirds of respondents expecting no change or an improvement to their prior
year bonus. This compares with just under 60% last year and is the first time we have seen a shift in
sentiment since 2010.
However, it should be noted that one third of respondents expect no change to their bonus.
13

14. Fig 4.2
Once again in 2013 the expected bonus amount for men exceeded that for women, this is affected
by the spread of more junior women responding to the survey. However, it should be noted that the
proportion of pay for women expected in the form of bonuses fell to roughly 16% of average salary while
the ratio for men rose to almost 30%.
Gender
2013
Gender
2012
Amount
% Average Salary
% Expecting a
bonus
Amount
% Average Salary
Female
£11,332
16.2%
62.2%
£11,093
17.2%
Male
£26,546
29.6%
60.8%
£23,458
26.8%
Prefer not to say
£26,000
20.7%
20.0%
£17,571
23.8%
TOTAL
£23,944
27.9%
60.7%
£21,312
24.8%
Fig 4.3
Job Level
Bonus expectations rose at almost all levels, apart from at VP level where it fell as a proportion of pay, but
rose in nominal terms. Analysts staff saw bonuses fall in normal terms and remain proportionally flat.
2013
Job level
2012
Average bonus
% Average
Salary
% Expecting a
bonus
Average
bonus
% Average
Salary
Analyst
£4,552
11.1%
55.7%
£4,972
11.3%
Associate
£13,456
27.5%
67.7%
£6,934
13.7%
AVP
£13,181
23.8%
67.4%
£11,299
18.2%
Manager
£11,840
20.4%
60.1%
£11,254
14.0%
Vice President
£24,584
31.7%
70.6%
£21,688
35.8%
Director/Executive Director
£51,781
48.6%
69.5%
£49,214
44.4%
Managing Director
£166,955
114.8%
59.0%
£115,618
87.9%
Other
£11,076
20.0%
42.4%
£20,249
30.7%
TOTAL
£23,944
27.9%
60.7%
£21,506
25.5%
Looking at the comparatives based on job level.
Female
Male
Percentage
Analyst/Associate
£7,010
£7,884
89%
AVP
£9,888
£13,742
72%
Manager
£5,695
£13,392
43%
Vice President
£18,475
£25,248
73%
Director/Executive Director
£32,239
£55,848
58%
-
£172,524
-
Other
£9,717
£11,469
85%
TOTAL
£11,332
£26,546
43%
Managing Director
14

15. Fig 4.4
Function
Bonus expectations rose as a proportion of pay across most functions with Revenue Generators and Sales & Distribution staff expecting
the highest bonus amounts.
As a proportion of income, bonus expectations for Risk and Strategy & Change staff fell significantly over the year. Could this be a
signal that business as usual is returning?
Firms are shifting their focus from transformation and risk to more business as usual endeavours.
2013
2012
Function
Average
Bonus
% Average
Salary
% Expecting a
bonus
Average
Bonus
% Average
Salary
Compliance
£18,572
23.1%
65.0%
£6,708
10.1%
Finance
£26,389
38.1%
71.9%
£29,526
37.8%
HR
£20,857
45.8%
64.7%
£8,457
17.3%
Internal Audit
£16,962
27.6%
68.8%
£23,410
25.3%
Operations & Middle Office
£17,143
27.4%
59.5%
£18,193
33.7%
Revenue Generator
£94,148
103.8%
68.7%
£61,507
81.2%
Risk
£20,869
32.0%
64.8%
£26,800
40.0%
Sales & Distribution
£63,297
75.1%
81.8%
£31,684
36.1%
Strategy & Change
£20,382
24.7%
62.0%
£45,821
68.7%
Technology
£15,840
24.5%
54.7%
£10,759
14.0%
Other
£23,555
39.5%
58.1%
£27,615
33.6%
TOTAL
£23,715
27.6%
60.8%
£21,506
25.5%
15

16. Fig 4.5
Sector
The highest bonus expectations are held by staff working in Private Equity and Commodity Trading, the lowest expectations are
amongst employees working in Ratings Agencies, Exchanges and within Fund Services firms.
The greatest spread of bonuses is expected amongst Payments, Clearing, Custody and Counterparty firms, Private Equity with
Commodity Trading and Investment Management firms also holding high expectations.
2013
2012
Sector
Average
Bonus
% Average
Salary
% Expecting a
bonus
Average
Bonus
% Average
Salary
Commodity Trading
£59,372
76.9%
68.5%
£17,091
28.0%
Corporate Broking &
Stockbroking
£22,947
35.2%
47.6%
5,458
8.4%
Exchanges & Trading
Platforms
£9.974
16.1%
55.7%
£12,993
16.8%
Fund Services
£9,547
18.3%
54.8%
£23,350
35.5%
Insurance
£12,262
22.8%
64.2%
£14,648
21.1%
Investment Banking
£30,439
39.1%
61.4%
£21,155
28.5%
Investment Management
£32,987
49.5%
68.7%
£48,403
67.8%
Non Financial Services
£13,519
26.7%
46.3%
£15,451
26.9%
Payments, Clearing,
Custody & Counterparty
£27,190
35.9%
73.5%
£17,128
24.3%
Private Banking & Wealth
Management
£15,633
20.0%
58.3%
£15,162
22.6%
Private Equity
£71,684
102.3%
72.7%
£50,675
51.1%
Ratings Agencies
£4,250
7.9%
60.0%
£5,500
9.2%
Regulators
£15,821
19.9%
61.1%
£7,917
8.2%
Retail Banks & Building
Societies
£14,839
19.9%
60.7%
£14,616
19.5%
TOTAL
23,944
27.9%
60.7%
£21,506
25.5%
16

17. 5. Expectations
& Reactions
The sentiment of City staff towards pay prospects for
2013.
Fig 5.1
Overview
Expectations of pay increases remain similar to last year with 45% anticipating a rise in pay.
5.1.1
Expectation of salary increase
Fig 5.2
Gender
5.2.1
Similar expectations towards pay increases are felt by both men and
women with females very slightly more optimistic.
It should be noted that more than 30% of men and women expect a
decrease in 2014, suggesting that pay will come under pressure next year.
Expectation of salary increase
17

18. Fig 5.3
Job Level
Junior staff were more
optimistic than senior staff
about pay prospects for the
coming year.
Fig 5.4
Function
Administration and
Internal Audit staff were
the least optimistic about
pay prospects for the
coming year. Compliance,
Operations and Strategy
staff expect pay to come
under pressure. Sales &
Distribution, Revenue
Generators and Finance
staff are the most
optimistic.
18

19. Fig 5.5
Sector
Payments, Clearing, Custody & Counterparty, Commodity Trading, Ratings Agencies and Retail are the most optimistic sectors.
Corporate Broking & Stockbroking, Investment Banking and Private Banking & Wealth Management expect continued pay pressure
in the coming year.
Fig 5.6
Bonus Dissatisfaction
5.6.1 Action taken if
dissatisfied with bonus
payment
There has been a fall in
appetite to change roles
this year, however 45%
would still consider a
move.
In contrast, we have seen
a substantial increase
over the last 3 years
towards seeking out
new opportunities with
an existing employer.
Employees are less keen
to move abroad, with the
lowest levels since 2010
who would consider the
move.
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20. Fig 5.7
Bonus Cap
UK banks are in the process of preparing themselves for the EU bonus cap which will take effect in
2014 to limit bonus payments but how will it affect recruitment in the City?
5.7.1 Exit Financial Services
5.7.2 Exit London
The majority of respondents felt that the
bonus cap would encourage staff to exit
the financial services sector.
Over half of respondents concluded that
the impact of EU caps would be to make
other locations more attractive.
5.7.3 Reduced Incentive
There is an almost 50/50 split
between those who think that
the bonus cap will disincentivise
employees to perform and those who
do not.
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21. About Astbury
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
London
Singapore
Jonathan Nicholson
60 New Broad St,
London
EC2M 1JJ
+44 (0)20 7065 1222
Mark O’Reilly
Singapore Land Tower,
50 Raffles Place,
Singapore 048623
+65 6829 7122
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