- REUTERS/Suzanne Plunkett
- Graduates working in quantitative analysis can expect to earn £85,000 a year straight out of university.
- They outstrip other entry level finance workers by as much as £25,000, according to data from Emolument.
- “We are in the midst of a structural change in the pay landscape, especially for graduates,” Alice Leguay, Emolument’s cofounder and chief marketing officer said.
LONDON – Graduates working in the world of finance and banking can earn as much as £85,000 a year straight out of university, new data from salary benchmarking site Emolument shows.
Emolument surveyed young professionals working across a variety of jobs in the UK financial services sector, and found that those with quantitative skills are likely to be the best paid when they first enter the job market, picking up an average salary of £65,000, topped up with a £20,000 bonus.
“Quants complete their studies with highly technical knowledge with which they can hit the ground running, making them some of the most sought-after graduates,” Emolument notes.
It should be noted that, generally speaking, quants tend to require a masters degree, while many other roles require only a bachelors.
Quantitative analysts on the buy-side earn almost £25,000 than their nearest rivals, bankers working in structuring, who earn total compensation of £60,500 – a combination of a £54,000 salary, and £6,500 bonus.
Below structurers, graduates working in institutional sales earn roughly £58,000, about the same as those in mergers and acquisitions, although M&A bankers have scope to rapidly increase their earnings as they ascend the corporate ladder.
By the time M&A bankers reach a senior position they can generally expect to be among the best paid people at their bank.
Rounding off the five best paid jobs for finance graduates is trading. Traders can expect to earn the same basic salary of £51,000 as graduates in M&A, but tend to receive a bonus of just £1,300, compared to £6,500 for their compatriots.
“We are in the midst of a structural change in the pay landscape, especially for graduates,” Alice Leguay, Emolument’s cofounder and chief marketing officer said.
“For the last 30 years, a clear path pointed to finance as not only the best paying sector for young employees, but also a guarantee of substantial paychecks throughout their career.”