In the last week, we've learned that bonuses at Morgan Stanleyand Citigroup were not exactly what junior staff were hoping for. Analysts at both banks are said to be "furious," "disappointed," and "salty" with the numbers their bosses wrote down and slid across the table, and are apparently wondering aloud if their talents might be better compensated elsewhere. One group of junior mistmakers that supposedly needn't worry? The youngest employees at Deutsche Bank.
Deutsche Bank is taking a new approach in the battle to retain junior talent: some managing directors are planning to make small cuts to their own bonuses so they can pay their subordinates more...bankers and recruiters have told the Financial Times that juniors — a term that typically covers bankers with less than a decade of experience — would do better than their bosses in this year’s bonus season...“It’s 100 per cent true [that junior bankers will do better],” one of the London bankers says, adding that the competition for junior talent was “phenomenal” because banks had hired so few people after the financial crisis.
Considering that back in October it was reported that Deutsche Bank was considering cutting its investment banking bonus pool by one-third-- which CEO John Cryan still thinks is too much--, this move would be quite generous!