Bankers' shrinking pay packages

With culls taking place across the street, it is a brave new world for out-of-work bankers. But beneath the headline numbers, there have been meaningful changes to pay packages, which have contributed to the predicament that many investment banks now find themselves in high fixed costs combined with slowing deal flow.

“Post-2008, there has been a material shift in investment banking compensation, principally as a result of the backlash from governments and regulators in respect of the size of bonuses awarded by the industry pre Lehman,” said Simon Roberts, managing director at recruitment firm Sheffield Haworth in Hong Kong.

“The result was that banks substantially increased base...