The world’s largest investment banks have hiked junior banker pay to six figures over the course of the past month in response to a burnout crisis that has seen up to 70% of analysts and associates leave some institutions and raised questions about the sector’s hard-charging culture.
Since JPMorgan unveiled plans to raise first-year analyst pay to $100,000 on 28 June, the vast majority of its bulge bracket rivals have followed suit, while smaller or independent players have raised pay even higher.
Banks are reacting after a stinging presentation by a group of 13 Goldman Sachs analysts unveiled 100-weeks and declining mental health. Goldman is one of the few banks not to raise pay — although chief executive David Solomon has hinted more rewards may come — instead focusing on recruiting more juniors to ease the workload.
Here’s a breakdown of the new pay for juniors at top investment banks and boutiques. The numbers are taken from internal memos, interviews or people familiar with the matter and have all been reported by Financial News. They are in US dollars for ease of comparison — in most cases there have been equivalent percentage uplifts in local currencies.
Bank of America – A $10,000 uplift for analysts was unveiled in April, with associates and vice presidents getting a $25,000 raise.
Baird – The boutique investment bank has raised first year salaries to $110,000 and second year to $115,000.
Barclays – First year analysts at Barclays are now paid $100,000. Analysts received a $15,000 pay rise, with associate salaries bumped up by $25,000.
Citigroup – First year analysts will now start on a salary of $100,000 after a $15,000 pay rise. Associates and vice presidents have received raises of up to $25,000.
Credit Suisse – Yet to increase salaries, but paid a $20,000 ‘lifestyle’ bonus to all dealmakers at vice president level and below in March.
Deutsche Bank – First year analyst pay has increased by $15,000 to $100,000, while the same raise for second years takes their salaries to $105,000. Those moving from analyst to associate will receive an extra $25,000, taking salaries to $150,000.
Goldman Sachs – No change.
JPMorgan – First year analyst salaries increased by $15,000 to $100,000. Second year analysts will receive $105,000 while pay for third years has risen to $110,000.
Morgan Stanley – No change
Nomura – Starting salaries for analysts have increased to $100,000.
Rothschild – The independent investment bank has raised first year pay to $105,000.
Stifel – The US-based boutique has raised first year salaries to $100,000, while second years will now receive $110,000 and third year analysts $125,000.
UBS – From 1 August, first year analysts will receive a salary of $100,000 — a $15,000 raise. Second year analyst salaries are $105,000 and $110,000 for those in their third year. At associate level, salaries have increased to $175,000 for first years, $200,000 in the second year and $225,000 for third years. Director level salaries increase to $275,000.
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