2026 Europe Investment Banking Professionals Compensation Survey

The European investment banking market is normalizing, with recovering deal activity, continued cost discipline, and more targeted talent investment. Compensation reflects this shift, with stable base salaries and greater reliance on variable, performance-based pay to reward performance while managing costs.

October 30, 2026

Liz Duggan ,

Christopher McCann

A message from the author

Compensation remains one of the clearest signals of how investment banks are responding to changing market conditions, competing for senior talent and rewarding performance. This year’s survey provides a snapshot of how those dynamics are playing out across the European investment banking market.

Based on responses from senior investment banking professionals across US and European investment banks and independent advisory boutiques, the report looks at base salary, bonus and total compensation, with comparisons across institution type, seniority and geography.

The findings point to a market in which base salaries have largely stabilized, while variable compensation continues to play an important role in overall pay. They also highlight meaningful differences in compensation across institution types and seniority levels, providing a useful benchmark for both firms and individuals navigating the market.

We hope these findings provide a helpful perspective on the European investment banking talent market and a useful starting point for conversations about compensation, retention and senior talent strategy.

As always, we welcome your questions and perspectives. Please feel free to contact me or anyone else within Financial Services at Heidrick & Struggles.

For further compensation analysis, see our 2026 Europe Investment Banking Professionals Survey compensation tables.

Access the compensation tables

Market context

After several years of disruption, the European investment banking market has entered a period of normalization. While macroeconomic uncertainty and geopolitical tensions continue to influence capital markets, deal activity has shown signs of recovery, with larger, more strategic transactions replacing the broad slowdown that characterized 2023 through early 2025. Even as market conditions improve, firms continue to operate in an environment defined by heightened cost discipline, evolving regulatory expectations, and increased shareholder scrutiny.

As firms navigate a more mature operating environment, they are increasingly focusing on making deliberate, strategic decisions that support long-term growth, operational efficiency, and sustained competitiveness.

The operating environment is also being reshaped by an evolving remuneration landscape. In the United Kingdom, the removal of the EU-era banker bonus cap has given firms greater flexibility in how they structure executive pay while maintaining regulatory expectations around accountability and prudent risk management. And the implementation of the EU Pay Transparency Directive is encouraging organizations across Europe to adopt more transparent approaches to compensation governance and hiring practices.

Organizations are responding by placing greater emphasis on balancing market competitiveness with sustainable financial performance. Demand for talent has become increasingly selective, with firms focusing investment on senior leaders, revenue-generating businesses, specialist product expertise, and other strategically important roles. Rather than competing aggressively across the market, organizations are directing resources toward capabilities that are expected to have the greatest impact on business performance.

Demographics

Survey respondents were distributed across leadership levels and represented the following titles: heads of group, senior managing directors, managing directors, and directors. While the most common team size was five or fewer people, teams of all sizes were represented. Forty-one percent of respondents were based in the UK, with the remainder located across mainland Europe.

Title

Team size

Location

Institution

Eighty-seven percent of respondents worked within investment banking, including advisory and coverage, with the rest sitting in corporate banking and capital markets. Forty-seven percent represented European investment banks, with 25% representing US investment banks and 18% at independent advisory boutiques. The vast majority worked at institutions whose fiscal year follows the calendar year.

Institutional alignment

Type of Institution

Fiscal year cycle

Expertise

Sixty-nine percent of respondents have spent more than 20 years working in investment banking, but 50% have been in their current role for five years or less. Seventy-six percent of respondents have expertise in M&A, and the vast majority focus on coverage/origination. Seventy-one percent also cite execution as part of their roles. Country coverage was the most common sector focus among respondents. The Europe, Middle East, and Africa (EMEA) region was the most common region covered.