Downloaded from: justpaste.it/7nb00
Investment bankers set to take home hefty bonuses
on record fundraising
Industry players estimate the average payouts to be in the range of 50-75 per cent of the bankers' annual
salaries. For the top performers, the bonuses could be 100-125 per cent
Investment bankers are set to take home sizeable bonuses this year on the back of robust equity capital market
activity in FY21, which saw record fundraising by way of qualified institutional placements (QIPs), infrastructure
investment trusts (InvITs)/real estate investment trusts (REITs), and rights issues.
Industry players estimate the average payouts to be in the range of 50-75 per cent of the bankers' annual salaries.
For the top performers, the bonuses could be 100-125 per cent.
The Covid-19 pandemic impacted the quantum of bonuses paid out last year as banks tried to conserve cash amid
the bleak outlook for fundraising.
"Last year, the bonuses were cut, held back, or deferred owing to the uncertainty caused by the pandemic. So,
bankers got less than what they deserved. This year will be different," a senior investment banker said on
condition of anonymity.
"Fees and revenues across different IB (investment banking) segments in FY21 have been good, and bonuses
among top investment banks could average 50-75 per cent of annual salaries, with much higher payouts for star
performers," said another investment banker. He added that higher volumes and the shorter turnaround time of
one to two months for QIPs meant that bankers ended up earning more money through such placements than
initial public offers (IPOs) in FY21.