Revealing my BANKER SALARY for the first time

well this isn't a video that I ever planned on  making but here we are so in this video I'm going   to share with you exactly what my salary was  every year for the last nine years in banking   to clarify I don't think it's easy for anyone  to come onto a public platform and say how much   money they've made especially not the British we  don't do this stuff and I haven't seen anyone do   it but hopefully it can encourage others to have  these conversations and to do the same and to   break down some of the barriers that exist when it  comes to discussing pay because by not having this   information accessible it works against us and  you'll see what I mean as we go through this video   I'm going to share my numbers using Great British  pounds as I get paid in pounds but given that US   dollar is the most globally traded currency and a  lot of my audience is outside of the UK also going   to include the US dollar equivalent on the screen  so quickly over the land when it comes to banking   what most people don't realize is that there  are so many different areas within a bank that   pay completely differently but broadly speaking  you can categorize about Bank within three areas   the front office the middle office and the back  office and without boring you with the intricacies   typically those working in the front office earn  the most as they are Revenue generating meaning   they make the bank money then the back office  particularly technology is probably the next best   paid and then it's middle office if you want to  know a bit more about the functions and how they   work then I have a specific video which I'll link  up here but for now we're just focusing on the   money side of things so I started my career  working in the middle office of one of the   world's largest investment Banks I did a summer  internship program there in 2012 and was paid 7   500 pounds for 10 weeks so if you prorator that on  a monthly basis it's around 3225 pounds a month I   didn't pay any tax on that amount because I was a  full-time student at the time and it was under the   taxable threshold then that internship turned  into a full-time offer at the same bank still   in Middle office so after graduating as a first  year analyst my starting salary in 2013 was 35   000 pounds which after tax and state contributions  National Insurance was 2218 pounds per month so   that's what I'm going to say for each of these  numbers I'm going to give you the pre-tax gross   salary on an annualized basis and then the amount  that was left in my bank account after taking away   taxes and state contributions the amount that  hit the bank account each month so again this 35   000 was the lowest starting salary on the graduate  program with the front office and the back office   functions making almost 10 to 20 more then as  a second year unless I got a seven percent pay   rise so my salary went up to 37 500 for the  year and after tax and other contributions   it was 2 371 pounds per month that hit my bank  account that meant with a seven percent pay rise   I had an additional 153 pounds each month in my  third year of working within the bank I moved to   the front office specifically in an area called  transaction banking I thought at that time that   that would mean I get a huge pay rise but the  reality was very very different and my salary   went up six percent to 40 000 pounds per year  on a monthly basis after taxes that was three   thousand five hundred and twenty three pounds per  month so although I moved to the front office I   didn't get the paywise that I was hoping for and  at the time I was told it's because I moved within   the same bank and because of that it would take  me a few years to catch up with my peers in the   division and what they get paid my younger self  believed this until a year later someone else I   knew made the exact same move from back office  to a front office the same function and they   got a substantial pay rise and that's when I  learned the importance of firstly talking to   others about money and of what they're making and  secondly not just taking the first thing that you   get thinking it's the best offer that can come  through okay moving on to the next year I got   promoted to a first year associate and given this  new information that I had it was the first time   that I negotiated my salary so that year my pay  was adjusted and I got a 30 pay rise so my salary   went up to 52 000 pounds a year again after taxes  and other contributions that was 3 135 pounds   in my bank account each month then the following  year as a second year associate so same division   same team one more year of experience my salary  stayed flat it didn't increase at all not even in   line with inflation so I made again 52 000 pounds  that year and after tax per month it was slightly   higher it was 3161 pounds and that's because the  personal allowance tax bracket changed that year   so it meant that I got more on a monthly basis now  here's where it gets interesting had I stayed in   the same organization and having spoken to people  who are still in that same organization still in   the same division still in the same team my salary  wouldn't be looking a huge amount different today   four or five years later maybe it would have  increased 15 to 20 percent maximum but as I've   said a number of times on this channel if you  don't think you're getting paid what you're worth   and you also don't see any career progression or  opportunities worth staying for then move and find   somewhere that will pay you what you're worth and  that's what I did I applied to other places and I   got an offer at a second tier Investment Bank so  not one of the largest anymore not as well known   it was about a quarter of the size a similar skill  set required different division but still in the   front office and I got a 45 pay rise so my annual  salary was now 75 000 pounds and after tax and   other contributions it was 4 297 pounds per month  I would never have seen that paywise had I stayed   in the same organization then the first year that  I was in this new bank I got promoted to a first   year vice president and I got another pay rise  and this time it was 20 so my salary went up to 90   000 pounds for the year which after tax after  ni was 5061 pounds per month then as a second   year vice president I still got another pay rise  a smaller pay rise but greater than the rate of   inflation at the time and it was seven percent  so my base salary was now 96 000 pounds on an   annualized basis which on a monthly basis after  tax and ni was five thousand three 359 pounds so   this was last year and just to give you an idea  of my savings rate my expenses were 2 500 pounds   a month and I've got a video which breaks down  exactly how that money was spent what my mortgage   is my interest rate I have all of that in a video  that I'll also link up my whole financial life is   online and then in December last year I started  a new job at another bank for another number of   reasons which I'll explain in another video and  again doing something slightly different and I   got another pay rise that I wouldn't have seen had  I stayed within the same organization now there   are a few things that I've missed intentionally  because it differs so much that it wouldn't help   you in any way so I haven't included my bonus  in these numbers this is discretionary and it   is heavily reliant on your performance and the  economy and it can range from zero to over a   hundred percent of your base salary typically  those in the front office will see a bigger   percentage of their base salary as a bonus and the  same goes as you climb up the corporate ladder the   more senior you are you can broadly expect  a higher percentage of your base salary as a   bonus so when I started in Middle office my bonus  was at best 15 of my base salary and then when I   moved to the front office that percentage was a  lot higher the second thing I haven't mentioned   is pension contribution and depending on which  bank you work for they offer different employer   match systems the last one I worked for offered up  to 10 of what I put in so that was in addition to   my basic salary and in most years I completely  maxed out so those are my numbers and I wanted   to clarify that unlike most people on YouTube I'm  not a cash millionaire and I think that there is   this assumption that if you're in banking you're  making millions but that really isn't the case   for the majority of areas within a bank at least  in London and banking doesn't pay what it used to   pre the 2008 financial crisis there are other  areas in the front office that get paid a lot   more than the numbers you've seen here so mergers  and Acquisitions trading and there are also other   areas of the front office that get paid a lot less  but I'm not going to go into the details of that   and I can just give you the information that I  know is true and that's reliable and those are my   numbers a couple of things that I've learned in  the last nine years of working in the corporate   life firstly don't be afraid to negotiate because  you don't get paid your worth you get paid your   ability to negotiate and that's just part of life  negotiations it's such an important skill and if   you keep passing up the opportunity to do it the  gap between you and someone else who is doing it   is only only going to get wider and wider as  the years go by the second thing is be okay to   move the biggest jumps in salary came from when I  switched jobs I'm not saying that you always need   to just jump around at every opportunity but when  the time comes when you feel like you're really   fighting hard to get a pay rise and you're putting  in 100 and you're not getting paid your worth and   nothing else is working for you in that role  don't be afraid to leave and go somewhere else   you're more likely to get paid your worth that  way than by staying in the same place and just   constantly fighting year and year out because yeah  loyalty is great but only when it's rewarded and   finally maximize other forms of compensation  so in addition to base salary there are other   forms of compensation bonuses benefits pension  contributions annual leave and so understand them   and don't be afraid to maximize these as well  because they can improve your overall package   anyway I would never have done this in a parallel  world but I said from the start that I want to be   completely transparent on this channel no matter  how hard it is I found it incredibly helpful   whenever I've come across similar content  although mostly from creators in different   Industries because it gives me an idea of what  other Industries are paying and where I can   expect the biggest page arms and what is possible  but I'd also love to hear from you whether this   has helped you at all or whether you rather I  avoid videos like this in the future and I'll   take that feedback on as I shape the direction  of where my channel goes thank you for watching   if you enjoyed this video you will also enjoy  another video that I have on my expect expenses   that I mentioned and how they are allocated  and I'll link that over here and see you there

Channel: Nischa

Views: 727,062

Keywords: investment banking, pay rise, banker salary, how much i made as an investment banker, negotiation, accountant explains, nischa, how to ask for a pay rise, getting paid my worth, negotiate pay

Id: wa0btZay9gU

Length: 9min 47sec (587 seconds)

Published: Sun Jul 09 2023