Japan Financial Services Bonus Survey 2021/22

Between January and April this year Morgan McKinley Japan conducted its annual Financial Services bonus survey. We received 261 responses from front, middle, and back office professionals across the industry, including securities/investment banking, asset management and corporate banking, as well as fin-tech, insurance, and consulting.

Here are the key findings:

83.2% of respondents received a bonus this year, a similar level to last year (82.1%).

Bonus percentages have shifted upwards. While the proportion of individuals receiving between 10-20 percent of their annual salary is comparable to last year (26% last year, versus 29% this year), over 40% of respondents received more than 30 percent of their annual salary, a significant jump from 29.8% last year.

Nearly two thirds of respondents (63.4%) say that their bonus was higher or significantly higher than last year. This figure has steadily increased for three consecutive years, from 30% in 2019/20 and 40% in 2020/21. 
 
Very few (2.15%) say their bonus was lower than last year.

67.4% of respondents have been offered a base salary increase this year. This is the highest in three years: in 2019/20 it was nearly 60%, last year it was 53%. 

Of those expecting a pay increase, nearly two thirds (64.5%) are expecting an increase of more than 5%. This is also the highest in three years: in 2019/20 it was 34%, and last year it was 56.5%.

The overall feeling amongst financial services professionals is neutral to negative.

Summary

Despite the ongoing pandemic the financial markets were, by and large buoyant and most financial services firms had strong financial results. 
It is no surprise that our bonus survey shows an overall upward trend. More individuals are receiving higher bonuses, as well as better base salaries.

More recent events with the crisis in Ukraine, and projections of slowing economic growth has naturally meant the outlook from those in the industry seems a little less optimistic. Thus far job volume from the financial services sector does not seem to have been hampered at all. In fact quite the opposite, most firms have fairly consistent hiring needs across most functional areas.