Investment banking salaries being driven down
Investment banks in Australia are in the process of cutting the salaries of new local hires on the back of falling revenue.
That's according to the findings of a recent roundtable of 13 senior human resources professionals from large global financial institutions hosted by eFinancialCareers.
The delegates agreed that Australian investment banking salaries, which rose in 2010 and 2011 to compensate for declining bonuses, now appeared artificially high, eFinancialCareers Asia Pacific editor Simon Mortlock said.
According to one US representative, his investment bank cannot "match or beat the base salaries" of the professionals they're trying to hire from competitors in Australia.
"In these cases, while we still offer competitive compensation, candidates need to decide whether they want to join us because of the other things we offer: the strength of our brand, client access, and opportunities for career progression," the representative said.
Another attendee said the need to retain talented investment professionals who have moved to Australia comes at a price because it is a "high-cost, high-wage destination".
Candidates in Australia have all but lost their negotiating power and it is often a matter of taking a pay cut or staying put, the roundtable delegate said.
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