Goldman VP’s £350,000 Bonuses Led Way for London Dealmakers in 2021

(Bloomberg) -- A hectic year for dealmakers across London resulted in soaring bonuses in 2021, with Goldman Sachs Group Inc. bankers leading the pack.

Goldman associates in the U.K. capital surveyed by recruitment consultancy firm Dartmouth Partners scored an average bonus of more than 180,000 pounds ($235,070) last year, a 70% jump on 2020 payouts. Vice presidents at the firm saw their bonuses more than double to an average 350,000 pounds, the report said.

Overall, associates at nine of the biggest investment banks in London were awarded an average bonus of 106,428 pounds last year, up by more than a fifth, according to the 303-person survey. Vice presidents received an average of 229,760 pounds, up 28%.

Base salaries were also on the rise. An average entry-level banker could expect 63,000 pounds, up 26% from the previous year, as firms competed for new staff to handle the surge in activity. This partly reflects pay rises announced at several banks during the year to help retain hard-pressed junior staff.

Globally, the value of mergers and acquisitions topped $5 trillion for the first time last year, fueled by cash-rich buyout firms and increasingly popular special purpose acquisition companies. 

The flow of deals -- and the accompanying bonuses for bankers -- may not keep up such a frenzied pace this year. Firms have reported shakier dealmaking so far in 2022, as inflationary pressures, lingering Covid-19 concerns and the war in Ukraine pose extra risks for potential takeovers.

“While bonuses are at record levels across the board, not every year can be a record one,” said Logan Naidu, chief executive officer of Dartmouth Partners. “But the spike in base pay is here to stay because once it’s up, it very rarely comes down.”

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