Bankers working in equity and fixed income will enjoy large pay rises this year with compensation set to increase by as much as 30%, a consultant has predicted, defying expectations that bankers will have to accept reduced pay during the economic downturn.

According to compensation consultants Johnson Associates, equities and fixed income employees working in sales and trading can expect anything between a 20% to 30% kicker in their total compensation this year compared to 2008, as a combination of strong customer flows and reduction in writedowns boosts pay.