Executive Summary

The report's findings indicate that, on average, employees in the wealth management sector earn £109,466 per annum. This average annual earnings figure varies depending on the role, location, gender, and ethnic group of the employee.

Overall, Private Banking earnings are higher than Investment Management on average, at £121,434 compared to £103,640. Directors and Senior Directors have the highest average earnings, with Senior Directors earning the most at £202,500.

Trainees have the lowest average earnings at £45,058. London is the location with the highest average earnings at £107,679.

It's worth noting that the average total earnings of Investment Managers and Private Bankers peak when they have been in the industry for between 16-20 years, dropping slightly thereafter. This shows not just a plateauing of earnings, but perhaps also a ‘peak’ for those at this stage of their career.

Typically, within most national firms, especially in Private Banks and Investment Houses, starting salaries for certain corporate grades are broadly the same, throughout the UK. This can increase over time, both by pay-rise and bonus depending on the size of book/income generated by that individual and naturally in London, where client sizes tend to be bigger, that is how the regional difference will often be reflected in total remuneration. Regional differences also become more pronounced within regional firms that don’t have national coverage.

It's important to note that there are disparities in earnings based on gender. Male employees have higher average earnings compared to female employees with £115,020 and £87,193. respectively.

The wealth management sector offers attractive remuneration packages with bonuses and pension contributions as key components. However, the analysis highlights disparities in earnings across different positions, locations, gender, and ethnic groups. These findings suggest that there is room for improvement in addressing these differences to promote a more inclusive and equitable work environment. Companies within the sector should continue to review their compensation policies and practices to ensure fairness, competitiveness, and employee satisfaction.