The average base pay for senior City staff has risen by 20% over the last year, says financial services recruiter Astbury Marsden.

The research shows average base salaries – for back, middle and front office vice-president (VP) level staff across all investment banks rose £81,250 to £97,500 over the last year, while some VP staff may be earning a base salary of more than £160,000.

Average pay for staff at assistant VP (AVP) level has increased by 12% over the last year, from £62,945 to £70,280.

Jonathan Nicholson, managing director at Astbury Marsden, says: “This year has witnessed a dramatic turnaround in how base pay is dealt with by investment banks and other City firms. Most workers in investment banks will have seen their base pay rise between 10–20% over the last year.

“While this is great news for the average City worker, these hikes in pay will place huge pressure on employers, as it will be even more difficult for them to control their costs.”