Investment banks are pretty keen on Madrid. Not long ago, Credit Suisse was even thinking of setting up a key European trading floor in the Spanish Capital. Goldman Sachs has been moving people to Madrid and adding staff like Julia Reig, an executive director in loan syndication.
It's not just Spain's comparatively weak labour laws and genial climate that make it attractive. A new salary and bonus survey from M&A Teaser, a Spanish M&A newsletter, suggests banks might also be drawn by the opportunity to pay their Madrid hires a lot less than elsewhere in Europe, particularly when staff reach vice president (VP) level.
Vice presidents at tier one banks in London earned between $363k and $435k in the last bonus round, according to recruitment firm Arkesden Partners. By comparison, M&A Teaser puts their total compensation in Madrid at between $244k and $257k.
On this basis, Madrid bankers are also paid a lot less than bankers in Paris and Frankfurt. It's unlikely that banks will create pools of juniors in Madrid simply to save money, but the low level of compensation in the Spanish city is worth bearing in mind when bankers elsewhere complain about being underpaid.
Have a confidential story, tip, or comment you’d like to share? Contact: firstname.lastname@example.org in the first instance. Whatsapp/Signal/Telegram also available. Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)
Photo by Javier Martinez on Unsplash