Pay Hike Watch '15: Credit Suisse, Deutsche Bank

Credit Suisse and Deutsche Bank are said to be raising junior banker base pay. This is happening so the banks can cut said junior bankers' bonuses so senior bankers don't have to feel bad about themselves. Just go with it.
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The banks are doing this to be nice to their littlest bankers but also to spare the feelings of their big kid bankers.

Credit Suisse has in recent weeks increased pay for some of its most junior grades while Deutsche is reviewing salaries for its analysts, associates and vice-presidents, according to people familiar with the situation. The moves come in response to new EU rules that cap bonuses for senior bankers at twice salary. These prompted a wider rethink of remuneration practices across the industry. Most junior bankers are not directly affected by the new rules. But banks are reducing their bonuses anyway so they do not receive bigger awards than their bosses, or become accustomed to large windfall payments. At the same time, they are increasing their salaries to offset lower bonuses, so there is no impact on total pay. Investment banks have increased junior salaries by as much as 20 per cent in some cases. The changes leave the junior bankers in a stronger financial position, since a larger proportion of their total pay is guaranteed, even if the bank performs badly.

Credit Suisse and Deutsche Bank review junior bankers’ pay [FT]

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Layoffs Watch '12: Credit Suisse

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