Why do candidates move?

Beyond the Bonus: What Is Really Driving Senior Banker Moves in Today’s M&A Market?

Bonuses in M&A remain some of the most competitive in finance. Yet money alone rarely explains why senior bankers decide to change firms. In today’s market, where compensation packages are often comparable, the real differentiators lie elsewhere. Understanding what truly motivates movement is critical for employers hoping to attract or retain top performers.

Market Context: Fewer Deals, Bigger Stakes

Recent data shows a structural shift in global M&A rather than a simple slowdown. Deal values increased 36% between 2024 and 2025, driven largely by a rise in megadeals, even as overall deal volumes grew only marginally.
This pattern—fewer but larger transactions—signals a market increasingly concentrated around high-impact mandates that elevate the profile of the bankers executing them.

In the UK specifically, total deal value reached £57.3 billion in H1 2025, down from the previous year, while volumes fell over 19%, reflecting a more selective environment.
However, the average deal size rose, highlighting a pivot toward strategic, high-value transactions rather than broad mid-market activity.

Globally, financial-services M&A value climbed sharply—rising 49% year-on-year to $418.9 billion in 2025, with large transactions accounting for the overwhelming majority of value.
This concentration means individual rainmakers—and the platforms that support them—matter more than ever.

A Rebounding but Uneven Cycle

Industry data suggests a gradual recovery rather than a full return to peak conditions. Global M&A activity rose 10% in the first nine months of 2025, signalling renewed momentum despite geopolitical and financing headwinds.
Other reporting points to a resurgence in large-scale transactions totalling roughly $4.6 trillion in 2025 deal activity, underscoring the renewed importance of elite advisory talent.

Within financial services specifically, more than 1,125 deals were recorded in H1 2025, with transactions over $1 billion representing 83% of total deal value, demonstrating how capital is concentrating in fewer, larger mandates.

Compensation Remains High—But Is No Longer the Deciding Factor

While compensation remains substantial, it is increasingly standardised across leading institutions. UK data shows bonuses commonly range between 50% and 65% of base salary, reaching roughly 109% of base for Managing Directors.
Recent reporting also shows banks continuing to raise payouts to stay competitive—for example, one UK institution increased average bonuses for senior investment-bank staff by 24% year-on-year.

Yet even as bonuses rise, sentiment surveys indicate many finance professionals are reassessing location, taxation, and long-term career prospects, with a significant portion considering relocation despite strong compensation.

The implication: pay is still necessary to compete—but no longer sufficient to retain top performers.

1. Platform and Deal Flow

For ambitious bankers, reputation and opportunity go hand in hand. A strong platform with steady, high-quality deal flow is one of the most powerful motivators.

The market’s shift toward megadeals amplifies this dynamic: transactions above $1 billion now account for a disproportionate share of total value, concentrating prestige and fee pools among fewer advisory teams.
Bankers increasingly move to firms where they can access these landmark deals rather than compete for shrinking mid-market mandates.

2. Leadership and Culture

Culture is increasingly decisive. As firms pursue fewer but more complex transactions, execution risk rises—placing a premium on aligned leadership and collaborative environments.

With M&A volumes falling across parts of Europe and other regions even as values grow, firms must deploy talent more strategically, making internal cohesion critical to winning and delivering mandates.

3. Client Relationships and Autonomy

Top bankers value the ability to cultivate deep client relationships with a degree of independence. In a market defined by large, strategic deals, individual client trust often determines advisory selection.

The dominance of megadeals—21 transactions above €1 billion in one European dataset alone—illustrates how a small number of relationships can drive a disproportionate share of revenue.

4. Progression and Recognition

As the market concentrates around fewer high-value opportunities, senior bankers are increasingly focused on where they can build enduring franchises rather than simply earn annual bonuses.

With dealmaking confidence returning gradually and major institutions anticipating a rebound into 2026, firms that can offer a credible long-term growth platform are best placed to retain leadership talent.

Conclusion

In M&A, bonuses still open the door—but market data shows they are no longer the primary reason bankers stay.
A cycle defined by larger, fewer, and more strategic transactions has shifted the competitive battleground toward platform strength, leadership credibility, and long-term franchise value.

Employers who focus solely on pay risk missing the deeper drivers of mobility. Those that invest in deal flow, culture, and career clarity will be best positioned to attract and retain the talent that ultimately determines advisory success.

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Beyond the Bonus: What Really Motivates Top M&A Bankers to Move