Pay packages for corporate finance and merger and acquisition bankers were up an average of 15% to 40% in 2000 in the US and Europe, according to research by headhunters TMP Worldwide.

In particular, competition to hire junior bankers has intensified, boosting bonuses. Second-year associates are expected to earn $280,000 (€300,000) on average, some 40% more than they made in 1999.