London’s financial sector has generated more than £1 billion in fees this year, driven by a massive wave of corporate takeovers that has fueled record-breaking pay for top investment bankers and lawyers. As overseas investors aggressively acquire British firms, the total value of mergers and acquisitions involving UK-listed companies surged by 175% in 2026, reaching $132.9 billion (£100 billion).
Official filings indicate that fees paid to professional advisors, including bankers, accountants, and legal teams, have surpassed £1.2 billion. This financial windfall is primarily attributed to a flood of private equity capital and interest from American buyers seeking undervalued UK assets. JP Morgan has emerged as the most active institution, advising on 14 separate takeovers with a combined value of $89.4 billion (£67.6 billion). Slaughter and May has led the legal advisory efforts. Lawyers and accountants working on these deals topped £1.2bn, official filings suggest, helping drive multimillion-pound pay packets, fees paid to investment bankers. Which is expected to generate more than £370m in fees, the most lucrative deal in the City this year was the £10.6bn takeover of the lab testing group Intertek by the private equity firm EQT.
The compensation packages for top-tier professionals have reached new heights, bolstered by the government’s 2023 decision to remove the cap on bonuses. Large investment banks, such as Goldman Sachs, now permit high performers to earn as much as 25 times their base annual salary. Similarly, senior managing directors at the boutique firm Evercore received average payments of £2 million, with top earners taking home as much as £16.2 million this year. UK bankers have also benefited from soaring bonuses, after the government scrapped a rule capping bonuses at two-times annual salaries in late 2023. Each bank now sets its own upward limit. Its best-paid member collected £16.2m this year.
The legal sector is also seeing significant earnings, with partners at “magic circle” firms recording their highest-ever pay. Partners at Linklaters and Clifford Chance were paid average sums of £2.5 million and £2.3 million respectively in the year ending April, while A&O Shearman partners earned £2.2 million each.
This surge in executive compensation arrives as the banking industry actively lobbies against potential tax increases. JP Morgan’s chairman, Jamie Dimon, has publicly cautioned Chancellor John Healey and his colleagues against raising bank taxes ahead of the October 28 budget. The industry group UK Finance has maintained a similar stance, noting that UK lenders already face a 28% corporation tax rate, which exceeds the standard 25% rate, in addition to a specific levy on their domestic balance sheets. The industry body UK Finance echoed the view this week.
However, these financial gains have drawn sharp criticism from labor leaders. Charlotte Brumpton-Childs of the GMB union highlighted the disparity between record City pay and the struggles of ordinary households, arguing that the country should re-evaluate what it values—whether it be the labor of essential workers or the wealth of a “bloated” financial sector.
Paul Nowak, general secretary of the Trades Union Congress, has renewed demands for a windfall tax on bank profits. He contended that if financial institutions can justify massive payouts for executives, they have the capacity to contribute more to the public purse, especially while citizens face rising energy costs.
These economic concerns are compounded by broader market trends. According to recent data from the Office for National Statistics, average total earnings growth in the UK slowed to 3.9% for the three-month period ending in July. Furthermore, while takeover activity remains high, the London Stock Exchange faces a separate challenge regarding new market listings. EY reported only seven new listings in the first half of 2026, raising a total of £577 million, though Airtel Money has signaled interest in a significant future public offering.
The current figures for dealmaker fees are expected to climb even further as they exclude pending transactions, such as the £1.7 billion takeover of easyJet by Apollo Global Management, and other deals that remain incomplete or pending official documentation. Overall, dealmaker fees are likely to be even higher this year as the figures do not include deals which did not complete, were rejected or for which documents have not been 7bn takeover of the FTSE 100 airline easyJet by the private equity firm Apollo Global Management, agreed last month.
