Credit Suisse has increased salaries for first-year analysts to $100,000, making it the last major investment bank to offer six-figure entry-level salaries amid a bidding war for juniors.
The Swiss bank told analysts within its investment banking and capital markets units that it would pay $100,000 salaries for first year analysts, $105,000 for those in their second year and $110,000 for third years, according to a person familiar with the matter. They will be back-dated to 1 July.
Financial News had earlier reported that Credit Suisse was preparing a second salary increase for juniors after an earlier pay hike in March to $95,000 — together with a one-time $20,000 ‘lifestyle’ bonus —meant it lagged its competitors, which started raising salaries in June.
A Credit Suisse spokesperson declined to comment.
Banks including Barclays, BNP Paribas, Citigroup, Deutsche Bank, JPMorgan, Morgan Stanley and UBS have now all raised entry level salaries to $100,000. However, Goldman Sachs increased pay to $110,000 on 2 August, setting a new bar for analyst salaries that was later matched or exceeded by boutique investment banks.
Until the communication to analysts this week, Credit Suisse was still deciding on an eventual figure for salaries, FN previously reported.
The now universal pay hikes for junior bankers stem from a leaked presentation by a group of Goldman Sachs analysts outlining declining mental and physical health amid a sustained run of 100-hour weeks. Banks have rolled out pay rises, one off bonuses and shaken-up working practices for analysts and associates since then.
Citigroup recently told its analysts and associates in Europe, the Middle East and Africa to take two-weeks holiday to ‘disconnect’ from work before the end of September.
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