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Base pay rates for senior City staff soar 20% over the last year

Base pay rates for senior City staff soar 20% over the last year
Average base salaries for senior staff across the City rise from 81,250 to 97,500
Pressure placed on bonus expectations
The average base pay for senior City staff has jumped 20% over the last year, says Astbury Marsden, a leading financial services recruitment firm.
According to Astbury Marsden, average base salaries for back, middle and front office Vice-President (VP) level staff across all investment banks has soared from 81,250 to 97,500 over the last year.
Astbury Marsden adds that as this average is calculated across all banks and functions, some VP staff may be earning a base salary in excess of 160,000.  
These pay increases have also filtered down to employees at a more junior level. Astbury Marsden says that average pay for staff at Assistant Vice-President (AVP) level has increased by 12% over the last year, from 62,945 to 70,280.
Jonathan Nicholson, Managing Director at Astbury Marsden, says: This year has witnessed a dramatic turnaround in how base pay is dealt with by investment banks and other City firms. Most workers in investment banks will have seen their base pay rise between 1020% over the last year.
Whilst this is great news for the average City worker, these hikes in pay will place huge pressure on employers, as it will be even more difficult for them to control their costs.
Astbury Marsden explains that pressure from the Government and regulators on City employers to curb headline grabbing bonus payments has made rises in base salary necessary.   
Jonathan Nicholson adds: These pay rises have inevitably meant that there will be less available in the bonus pot. We are already hearing of concern amongst City employers that their staff may not be fully aware that these salary increments will have an adverse effect on their annual bonus.
In any other sector these would be seen as very substantial pay rises. But many City staff buoyed by the mood music amongst politicians and other commentators that it will be another bumper year for City bonuses could feel aggrieved when they are told of their actual bonus size. Managers will have to ensure that staff expectations are realistic.
Jonathan Nicholson adds: This could create a staffing headache for City employers in the New Year and beyond, as this has traditionally been a very productive time for banks and City firms looking to bolster teams by taking staff from their competitors.


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