While 2020 was a year of rising junior salaries in banking, less attention was paid to seniors. Or, in the regulatory lingo, “material risk takers”. Material risk takers are employees who manage large teams or who are responsible for significant risk functions that can have a material impact on the bank. They are typically, but not necessarily, managing directors (MDs). Every year, banks operating in London must report on the compensation those material risk takers receive and break down the cash and stock bonus components of their pay.
The reports are typically filed a year after the payments have been made and we have compiled the below 2020 stats from five major banks operating in London. J.P. Morgan and Morgan Stanley, on average, paid more than Citi, Goldman and Bank of America. The two Morgans also paid the highest average bonus to material risk takers with a large portion in stock options (77% for J.P., 78% for Stanley).