MUMBAI: With the return of a booming primary market, million-dollar investment bank bonuses are expected to be back with a bang. Global and domestic investment banks in India have earned the most fees in the past five years in 2017, making a strong case for big annual payouts, industry experts and headhunters said.Investment banks in India earned around $444 million in the year to date compared with $344 million in fees in 2016 and $364 million in 2015, thus making 2017 the highest grosser after the boom years of 2008-13, according to Dealogic, a global data provider. With days to go before the new year, bankers are rushing to close deals and the number could go up further, experts said. Some have doubled their income from the Indian market, raising expectations that after years of indifferent paydays, this year will be a bonanza. "The market has been good this year and that should reflect in the revenues and compensation," said the HR head of a foreign bank, seeking anonymity.Star bankers are hoping to take home million-dollar bonuses on top of base pay of $200,000-800,000. "Some of the best performers who have met their revenue targets will be rewarded handsomely," said another banker with a global bank. Compensation at global banks is broken up into a fixed component and a variable bonus "Bonuses are expected to be much higher this year on the back of revival of capital markets and a large number of PE deals," said K Sudarshan, managing partner at executive search firm EMA Partners India."However, whether this will translate into a million dollars, one has to wait and see. More than hefty cash bonuses, there could be huge stock components and restricted stock units (RSUs).This has been a great year for I-banks but one has to see it in the context of severe pressure of capping compensation and bonuses in many MNCs . However, there will be a strong comeback," said Sudarshan of EMA Partners India.The banks that have earned the most fees this year are JPMorgan ($70.98 million), Citibank Capital Markets ($29.89 million), Axis Bank ($27.30 million), Goldman Sachs ($19.85 million) and ICICI Bank ($19.66 million). Others such as Credit Suisse, Morgan Stanley, Kotak Mahindra Capital Co, Bank of America Merrill Lynch and Standard Chartered Bank have also made it to the top 10 in terms of core investment banking fees in Dealogic's league table.Core investment banking fees include earnings through equity capital market (ECM), debt capital market (DCM) and merger and acquisitions (M&A) advisory. Annual payouts for most global banks take place in January and February while domestic banks announce annual bonuses in June.None of the global banks, which lost a lot of business to their domestic peers, handed out seven-figure bonuses to employees last year. Most cut payouts, some even by half, I-banking sources said.Equity market deal volumes in 2017 rose three times to $30.38 billion from $10.09 billion in 2016, data showed. Around 270 ECM deals were executed in the year, up from 154 in 2016. Of this, as many as 153 were initial public offerings (IPOs), raising $11.6 billion, a 74% rise from the previous year, according to an EY report. The stock market has risen by 27% so far this year, giving companies a broad window to raise capital.Selective M&A deals, driven by record private equity and venture capital investments of $23.3 billion through 537 deals, also led to the surge."This has been one of the stronger years for I-banking," said Anshul Lodha, director at recruitment agency Michael Page India. "More so on the capital market side that fetched big business and fees with the huge number of IPOs and QIPs (qualified institutional placements). The advisory market too was buoyant with an estimated 20-25% increase in fees. All this is expected to lead to heavy bonuses this year."During 2013-2017, investment banks in India saw deal volumes plunge, leading to shrinking fees. This took a toll on headcount in most global banks that were forced to lay off people and move coverage out of India. Some banks deferred bonuses while others offered equity in lieu of cash payouts. Domestic banks meanwhile hired carefully and managed their teams with minimum pay hikes.For an industry marred by almost non-existent capital market business in the past few years, 2017 came as a relief, with high fee income across the board in investment banking. "Expected high bonuses would not only help retain current employee base but also attract new talent to the industry which faced steady decline in headcount in the past few years," Lodha said.The total headcount in Indian investment banks shrunk to around 700 from more than 1,000 between 2012 and 2017, with some taking up corporate jobs and others moving out to start on their own, according to data from Vito India, a domestic headhunting firm.To be sure, not every bank has performed well. Some boutique and standalone advisory firms have seen a dip in fee income over the previous years and that will lead to bonuses remaining flat.
Struggling to come up with a way to ring in 2018 in style or just looking to do something different? We look at some of the best offerings to ring in the New Year.
Struggling to come up with a way to ring in 2018 in style or just looking to do something different? We look at some of the best offerings to ring in the New Year.
Catch the sunrise at Ireland's most scenic spots Sunrise at Hook Lighthouse Ireland has no shortage of gorgeous beauty spots that are the perfect place to welcome the New Year. The team at Hook Lighthouse in Co is hosting their first sunrise tour which has sold out but there are plenty of other options to watch the sun come up on January 1. Try Kiliney Hill on Dublin's southside or along the coast in Greystones Co Wicklow.
Keep it local Photo: Stock Image Masquerade balls and NYE parties are a dime a dozen around the country but the Christmas season is the best time of year to support local businesses. Visit your local restaurants and pubs to ring in the New Year with people from your area, all while supporting local business. Get into the thick of it in Dublin city centre The New Year's Festival in Dublin will kick off on Sunday December 31 and run over two days.
The 3Countdown Concert will begin at 8pm. Kodaline will perform live from Custom House Quay on New Year's Eve. While an event will also be held on New Year's Day in the city centre which will include the brilliant Garda Band, the Line Up Choir, and the Hit Machine Drummers.
Or avoid the crowds and mix it up at home Glass Bowl Dingle Gin & Irish Tonic Grab your nearest and dearest and try your hand at mixology and whip up some festive cocktails to toast 2018. Alternatively you can stick to the basics with a twist. Check out some of our tips on how to rustle up the best gin and tonics.
Be daring - hop on a plane and welcome the New Year abroad Parisian joie de vivre, where iconic landmarks include the Eiffel Tower, Arc de Triomphe, the Louvre, and the Sacre Coeur It may be too late to jet to Sydney for the fireworks or Rio for the famous beach party but there are plenty of excellent options closer to home if you are looking to Last minute holiday specialists such as lastminute.com and others have dozens of last minute deals including Paris, Prague and Edinburgh.
Blow of the cobwebs and get outside Waterford Greenway. Photo: Pól Ó Conghaile No matter what you do to watch the clock strike midnight (or not) get out and about to blow off the cobwebs of the old year and welcome the new.
Ireland has an embarrassment of scenic walks, mountain climbs for all fitness levels and stunning coastlines.
Grab a bike and tackle the Greenway cycle route in Waterford or a take in a portion of Wild Atlantic Way. Start 2018 with some zen Yoga New Year's yoga retreats are increasingly popular around the country but if you feel yourself needing a little downtime post-party season there are a number of weekend retreats kicking off in January that run throughout the year. The Burren Yoga Retreat in Co Clare offers a busy roster of yoga, guided Burren outings and healthy vegetarian walks. There is limited availability left for their January 3-9 retreat and for each weekend in the remainder of the year.
Online Editors
The curtains are coming down on 2017 and soon we'll all have an all new year in 2018. With the year ending it's hard not to evaluate the year gone by and plan your moves for the upcoming one. The new year brings with it the hope for a new beginning, some new possibilities, and many new dreams to fulfill. The new year also brings the chance for people to try out new things and set better personal goals for oneself. Every year millions of people list down their aspirations, aims and targets for themselves and promise to fulfill them in the new year. These are popularly known as new year's resolutions and help one to achieve goals they have set for themselves. While many people are successful in reaching their aim, many find it hard to keep up with their own plans. Whether it's health, relationships or personal finance, keeping a new year's resolution going let alone achieving it can be quite hard. However, it's not impossible to accomplish what you set out for yourself. Hard as it may be, new year's resolutions can help improve one's life and fulfilling them can bring one a sense of triumph. All it'll take is a little bit of your time and some will power, and soon you'll have exactly what you set out to accomplish. The trick is set small targets and let the achievement stir you to work on bigger and more time consuming resolutions. And remember, don't be hard on yourself if you slip up. All you have to do is get back up and try again.So, we've rounded up some new year's resolutions most people list for themselves. See if you would like to choose one for yourself.
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