Wall Street: Goldman Sachs raises junior bankers' basic pay
First-year analysts – fresh out of college, will now earn $110,000 annual base salary at Goldman Sachs compared to $85,000
August 03, 2021 / 02:19 PM IST
Notably, while it has been last out of the gate, Goldman Sachs has not only met competitors pay, but exceeded it, possible leaving them to play catch-up (Representative image: Unsplash)
Goldman Sachs has become the last Wall Street firm to raise payment of junior bankers after resisting the move earlier.
A source told CNBC that first-year analysts – fresh out of college, now earn $110,000 annual base salary compared to $85,000; while second year analysts get $125,000 (from $95,000) and first-year associates earn $150,000 (from $125,000).
Moneycontrol could not independently verify the report.
Earlier in the year, Barclays, Bank of America, Citigroup, Morgan Stanley and JPMorgan Chase handed out salary hikes to first year analysts up from $85,000 to $100,000 p.a. At the time Goldman Sachs said it would instead hire more employees, but has now become the last Wall Street firm to raise pay – establishing the new floor compensation among major banks.
Notably, while it has been last out of the gate, the arguably biggest Wall Street bank has not only met competitors' pay, but exceeded it, the report noted. A recruiter told CNBC, others may now have to play catch-up.
The sector made moves after an internal survey of Goldman employees in March detailed long hours and burnout caused by the deals boom. Rivals thus announced perks and special bonuses to lure workers.
The pay hike is affordable for firms as business boomed to $2 trillion in H1FY21, largely due to advising on mergers and acquisitions deals, generating large fees and compensation pools.