Barrenjoey is paying its investment banker bonuses in monthly instalments

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Barrenjoey’s investment bankers have climbed league tables this year, but their expensive salaries have taken a toll as expenses continue to pile up.

Barrenjoey Capital Partners is paying its deal makers their bonuses in monthly instalments, instead of quarterly, as investment banks ride out the downturn in fees and come up with creative ways to mitigate defections.

Junior bankers often receive a cash bonus in one lump sum, while senior bankers receive cash and stock. Investment banks headquartered in the United States typically announce bonuses in January and European banks pay their staff in February. Barrenjoey held “envelope day” – Wall Street shorthand for when bankers learn their windfall – in late August.The decision to make monthly payments comes after its employment expenses increased to $174 million for the 2023 financial year, from $145.4 million a year earlier.

People who spoke under the condition of anonymity were not entirely put off by receiving monthly payments as it helps mitigate the risk of defections, but they admitted it was a departure from the usual Wall Street way of upfront cash payments.

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