Discover your dream Career
For Recruiters

The other bankers on track for the biggest bonus increases this year

Last week's Johnson Associates bonus predictions for 2024 suggested that Debt Capital Markets (DCM) bankers will be the luckiest when it comes to increased bonus this year. A new report suggests they might be beaten by their colleagues in Equity Capital Markets (ECM) teams instead.

Get Morning Coffee  in your inbox. Sign up here.

Data from market intelligence firm Tricumen showed that ECM fee revenue jumped by 60% in the first quarter of 2024 compared to the same period of 2023. The growth was driven by a tripling of IPOs in the USA.

As the chart below shows, the average productivity for ECM bankers, measured as operating revenue per front office Full Time Employee (FTE) was up by 63% over the same time period. Banks are bringing in much higher revenues with the same number of ECM staff. 

How about the DCM bankers, whom Johnson Associates predicted would receive the biggest bonus increases? Measured on the same basis, their average productivity increased by only 33%, according to Tricumen (which also included securitization revenue for DCM bankers).

Tricumen's analysis of revenues per head in other areas of banking is less promising. In fixed income trading, some areas did well and others did not. Credit traders experienced a 20% rise in productivity; currency trading revenues per head fell 22%.

In equities sales and trading, Tricumen's figures suggest that revenues per head were flat. Employees working across cash equities, equity derivatives & converts, and prime services all brought in similar levels of revenues to last year.

In M&A, the average M&A banker also generated revenues similar to last year's level.

Johnson Associates is predicting a 5 to 15% increase in equities bonuses this year and flat M&A bonuses.

The latest predictions are based on first quarter performance: things may well change, but this is the lie of the land now.

Have a confidential story, tip, or comment you’d like to share? Contact: +44 7537 182250 (SMS, Whatsapp or voicemail). Telegram: @SarahButcher. Click here to fill in our anonymous form, or email Signal also available.

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

AUTHORZeno Toulon

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Recommended Articles
Recommended Jobs
Man Group plc
Portfolio Manager (Macro)
Man Group plc
London, United Kingdom
Deutsche Bank
Trader - Vice President
Deutsche Bank
New York, United States

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.