- Many Wall Street firms have bumped base pay for junior investment bankers.
- The going rate for first-year analyst base pay is now at least $100,000 at many banks.
- Goldman Sachs, Lazard, Wells Fargo among latest to tell employees about raises. Here’s a rundown.
- See more stories on Insider’s business page.
Across Wall Street, financial firms are competing to keep talent by raising pay. Some banks are also going on big recruiting pushes— though recruiters say the hiring pool is nearly tapped out for junior talent.
Trying to keep track of which Wall Street firms are raising pay?
Here’s our running list of which investment banks have given raises and what different levels like analysts, associates, and vice presidents are getting paid now:
Guggenheim Securities, a division of the financial-services firm Guggenheim Partners, has raised base compensation for investment-bank analysts for a second time in a matter of months, Insider has learned.
The firm has increased base comp to $110,000 for first-year investment-banking analysts, $120,000 for second-year analysts, and $130,000 for third-year analysts, a person familiar with the situation told Insider. The person requested not to be identified discussing private matters.
The announcement was relayed on an internal Zoom call on August 12, the person said. Derek Ahmann, senior managing director at Guggenheim Securities’ investment-banking division, made the announcement to a group of nearly 150 analysts, the person added.
Insider previously reported that first-year IB analysts at Guggenheim Securities were told in May that, effective July 1, they would earn $100,000 at the first-year analyst level, $110,000 at the second-year analyst level, and $125,000 at the third-year analyst level.
Evercore just bumped its base compensation for junior bankers to make it one of the top-paying investment banks for first- and second-year analysts.
Current first- and second-year investment-banking analysts were told internally on August 10 that their base salaries would rise to $120,000 and $130,000, respectively, three people familiar with the situation told Insider. It was not clear when the raises would take effect or whether they would be backdated.
Wells Fargo is raising base comp for analysts and associates in its corporate and investment bank, a bank spokesperson confirmed to Insider.
“We can confirm the adjustment of base pay in certain client-facing positions across the Corporate and Investment Bank, which ensures we remain competitive and aligned with market practices. We are committed to offering compensation that attracts, motivates, and retains talent,” the spokesperson said.
First-year analysts in Wells Fargo’s CIB division will see base comp bumped to $100,000. Second-year analysts will earn $105,000, and third-years will earn $110,000 pre-bonus.
Wells Fargo associates are also getting pay bumps. First, second, and third-year associate base pay will be bumped to $175,000, $200,000, and $225,000, respectively.
These raises are retroactive to July 1st.
Wells Fargo offered analysts and associates special bonuses up to $20,000 in April, Insider reported.
The firm is increasing base compensation for first-, second-, and third-year investment-bank analysts to $105,000, $110,000, and $125,000, respectively, according to an email sent by James Bunn, Raymond James’ president of global equities and investment banking. The raises will take effect on October 1.
While Bunn said in his email that the pay bumps should put Raymond James at the “high end of analyst salaries on the Street,” junior bankers may not end up taking home more total pay than before.
“Importantly, our primary focus is on total compensation (salary + bonus) and these salary increases are not intended to represent an increase in total comp,” said the email.
HSBC is bumping pay for first-year base pay for analysts to $100,000, up from $85,000, a person familiar with the matter confirmed to Insider.
The raises, which were first reported by Reuters, were finalized several weeks ago but announced internally to line managers on August 3.
All first-year investment-banking analysts starting at the firm this year through the bank’s graduate recruitment program are eligible, the person said. This increase brings HSBC’s first-year analyst pay in line with JPMorgan, Morgan Stanley, and Citi, which all recently bumped base pay for its most junior employees by $15,000.
Summer interns in the firm’s investment bank will get full-time offers this month, and start working on a desk in September. Promotions to second-year analyst happen during a March pay review. The overall analyst program is 2-1/2 years long.
Lazard is raising base comp for junior investment bankers in the US, a person familiar with the matter told Insider on August 3.
The firm is raising first-year analyst salary to $100,000; second-year salary to $110,000, and third-year salary to $110,000 as well.
Salaries will go into effect as of the August 13 payroll and be retroactive as of July 1.
The memo added that bonuses for the year ending June 30 will be awarded to investment-banking analysts during the week of August 9.
Goldman Sachs is bumping pay for investment banking analysts and associates, Insider first reported on August 1.
Second-year analysts will now make $125,000 in base compensation, while base comp for first-year associates is bumping to $150,000, two people familiar with the matter told Insider.
There hasn’t been a formal announcement or memo yet about the raises, the sources said; the new salaries were posted in Goldman’s internal human resources portal.
Pay for first-year analysts will rise to at least $110,000, according to a report by Bloomberg.
The move came months after the firm’s culture regarding junior bankers first came under scrutiny this spring.
William Blair, a boutique investment bank based in Chicago, is raising salaries for bankers from junior to senior ranks.
The raises will go into effect in the Aug. 15 payroll cycle. A person familiar with the matter told Insider that the raises apply to the firm’s investment bankers globally. While it could not be determined by precisely how much the bank was raising salaries, here is their new base compensation structure:
- First-year analyst: $110,000
- Second-year analyst: $115,000
- Third-year analyst: $125,000
- First-year associate: $175,000
- Second-year associate: $175,000
- Third-year associate: $200,000
- Fourth-year associate: $225,000
- Vice President: $275,000
- Director: $300,000
- Managing director: $350,000
William Blair executives earlier this year told its investment-banking analysts, associates, and vice presidents who joined the firm before Jan. 31 they would receive “a special, one-time spot bonus” in the amount of $20,000.
More recent hires got smaller bonuses. Analysts, associates, and vice presidents who had joined the firm as of February received $13,000 bonuses. And those who signed on in March received $6,500 bonuses.
The special bonuses hit accounts in the April 15 payroll cycle.
First-year analysts in the investment-banking and GCM divisions will now earn a starting salary of $100,000 before bonus, a person familiar with the matter told Insider. Second-years in both divisions will earn $105,000.
The raises are $15,000 for each level and were announced internally on July 28. Previously, first-year analysts earned $85,000, and second-years earned $90,000. The changes will go into effect on August 1 for analysts in both of the divisions globally.
The bank is raising salaries for analysts, associates, and directors within its investment bank, two people familiar with the matter told Insider on July 21.
The raises are effective August 1. And analysts, associates, and directors across all regions are eligible for the raise.
- First-year analyst base salary to $100,000.
- Second-year analyst base salary to $105,000.
- Third-year analyst base salary to $110,000.
- First-year associate base salary to $175,000.
- Second-year associate base salary to $200,000.
- Third-year associate base salary to $225,000.
- Directors base salary to $275,000.
Deutsche Bank is raising analyst pay by $15,000, a person familiar with the company’s plans told Insider.
The firm will pay its US-based first-year investment banking analysts $100,000 and second-year analysts $105,000 in annual base compensation. The news was first reported by Bloomberg.
US-based IB analysts who are promoted to the associate level midyear will receive a $25,000 increase, bringing them to $150,000 before bonus, the person said. Globally, the raises will be implemented by similar percentages for analysts and newly-promoted associates overseas.
PJ Solomon is raising pay for analysts and associates retroactive to July 1. The changes will appear in July 21 paychecks, according to a memo reviewed by Insider.
Here’s a breakdown of new base pay at the boutique bank:
- First-year analyst: $100,000
- Second-year analyst: $105,000
- Third-year analyst: $110,000
- Stub associate and first-year associate: $175,000
- Second-year associate: $200,000
- Third-year associate: $225,000
CEO Marc Cooper signed the memo, telling employees that the new rates are reflective of “competitive market rates for base salaries by level.”
“It’s because of your commitment to excellence that we continue to grow as a firm, launch new industry verticals, recruit the best talent, and invest in professional development,” Cooper added. PJ Solomon’s raises were first reported by Bloomberg News.
Japanese lender Nomura is raising entry-level analysts’ salaries to $100,000, according to a report from Financial News which was followed by a separate report from Bloomberg News. Both reports cited persons familiar with the matter.
The pay raises will go into effect this month, the outlets said. Nomura did not immediately respond to a request for comment from Insider.
Analysts, associates, and vice presidents in Citigroup’s banking, capital markets, and advisory division will receive base salary increases.
The raises will be reflected in payments starting in August, according to an internal announcement first reported by Insider on July 2. Tyler Dickson and Manuel Falcó, co-heads of Citi’s BCMA group, sent the memo, which was reviewed by Insider.
Raises will range from $15,000 to $25,000 depending on the employee’s level, a person familiar with the matter said.
The decision to raise base comp was a reaction to the “extraordinary set of demands” that bankers have faced over the past year, Dickson told Insider in an interview.
Barclays is raising base pay for US investment-banking analysts by $15,000, and for associates and vice presidents by $25,000.
Salary raises go into effect on July 1, a person familiar with the matter told Insider. Employees outside of the US will receive equivalent percentage raises in their local currencies. The news was first reported by Bloomberg, which said that analysts will now get paid $100,000 before bonus.
Wall Street’s biggest bank is rolling out pay bumps for junior workers in its investment bank and first-year analysts will now make $100,000 before bonus, sources familiar with the situation told Insider on June 28.
But JPMorgan’s investment banking co-heads had told Bloomberg in April that they were focused on hiring as well as time away from the computer to ease young bankers’ workloads. The firm this spring hired 65 analysts and 22 associates, co-head Jim Casey said, and there were plans to hire 100 more bankers and support staff.
“It’s not a money problem,” he told Bloomberg at the time.
Boutique advisory firm Centerview partners is offering a $200,000 retention bonus to its junior bankers, according to a Bloomberg report on June 3. The firm is offering the cash to analysts who will be promoted to associates this summer, but there’s a catch: young talent will have to commit to sticking around for at least two years in order to be eligible.
The firm is also working on a policy that bans juniors from working during their four weeks of yearly vacation, the Bloomberg report said.
Centerview did not immediately respond to a request for comment from Insider.
RBC Capital Markets
RBC Capital Markets is bumping analyst pay by $10,000 and associate pay by $20,000, according to a social media post on @Litquidity, a popular Instagram account in the financial-services community. A spokesperson for RBC Capital Markets declined to comment to Insider on salary matters. The raises impact US employees and would go into effect in June, according to the post.
The spokesperson for the firm told Insider that RBC Capital Markets would implement some other benefits for employees, including:
- No internal video calls to be held before 9:30 a.m. or after 7 p.m.
- Fridays will be entirely video call-free
- Three-day long weekends at least once per quarter, which are designed to give bankers a chance to unplug from business
- Mandatory vacation time for vice presidents, associates, and analysts, including two five-day weeks per year where they take off and do not have VPN access
- The firm is also implementing “technology solutions to reduce the manual execution of repetitive tasks”
UBS is paying a new, one-time bonus of $40,000 to investment bank analysts promoted to associate, Bloomberg reported.
The Swiss bank first announced plans for both the promotion bonus and salary increases in an internal memo reviewed by Insider and first reported by Financial News.
According to the memo sent on April 21 by global banking co-heads Ros Lesperance and Javier Oficialdegui, the new bonus will be paid by June for people promoted in March 2021. And going forward, all newly promoted associates will get this new bonus at year end.
The firm is also moving up its timeline for year-end reviews for analysts to July and salary increases to August, bringing UBS in line with competitors. Since 2021 will be a transition year given the new “year end” is being introduced this summer, analysts will get a stub bonus payment in August reflecting the January-June period.
The memo said that UBS was “actively recruiting” to alleviate junior bankers’ workloads and encouraged staff to connect people in their networks with the bank to earn referral awards. Insider previously reported the bank has posted jobs for SPAC-focused junior bankers.
The boutique investment bank, which is known for its industry-leading restructuring business and its banking services largely oriented toward the middle-market, has announced internally that it is offering first-year analysts in the US who sit in the firm’s corporate finance division a $5,000 base compensation increase, a $10,000 spot bonus, and an all-expenses paid vacation to a destination based on a list of options the firm has compiled.
A person familiar with the company’s plans said that other analysts at other levels or business lines could receive similar perks, but it could not be determined how large their bonuses or salary bumps would be, nor could Insider verify the locations where analysts would be able to travel to.
The person familiar also said that everyone in the corporate finance division, from analyst up through managing director, would be eligible to receive the all-expenses paid trip.
Bank of America
Bank of America is raising salaries for associates and vice presidents in its US investment-banking division by $25,000, and analysts by $10,000, two sources familiar with the new measures told Insider in early April.
Non-US based bankers will see a similar bump, one source added. That source said that the thinking behind the salary bumps is that it fits in broadly with the bank’s focus for the past decade on alleviating some of the work-related difficulties that inherently come with junior talents’ jobs, like taking measures to reduce pitch documents, for instance.
Credit Suisse told some junior to midlevel workers in its global capital-markets and advisory group to expect to receive salary raises and bonuses. The Swiss bank plans to disperse $20,000 bonuses to analysts, associates, and vice presidents, with bonuses hitting accounts as soon as the second quarter of 2021.
The firm will also increase salaries for people in the global capital-markets and advisory group at the director level and below, which includes vice presidents, associates, and analysts. Salary raises took effect for directors, vice presidents, and associates as early as April.
The firm is also implementing a relaxed dress code for those back in the office, but traditional dress-code requirements will continue to be in place for client meetings.
Moelis & Co
The boutique investment bank Moelis & Co. is offering junior investment bankers a $10,000 “allowance” to spend this year on services suggested to pertain to mental health, Bloomberg reported in late March.
Recipients of the payments, which will come in three parts — first, a $5,000 payment, followed by two $2,500 payments — will be executive directors, vice presidents, associates, and analysts, Bloomberg reported, citing people familiar with the matter.
In its report, Bloomberg also noted that Moelis is “encouraging bankers to take one Saturday a month away from work for dealmakers, except during active deals or clients requests.”
Jefferies Financial Group CEO Rich Handler and President Brian Friedman, the top executives at the investment bank, sent a memo to their 1,124 analysts and associates worldwide on March 18 offering them their choice of gifts to thank them for a year of grinding and producing strong results for the firm.
On offer are a Peloton at-home workout bike with a one-year subscription, a Mirror Home Workout system with a one-year subscription, and a suite of Apple products including the Apple Watch, iPad, AirPods Pro, and AppleCare Plus coverage.
Other pay raises and special bonuses across Wall Street:
BlackRock told employees on July 14 that it would raise base pay for staffers at the director level and below by 8% as a way to reward its workforce, a person familiar with the matter told Insider.
The pay rise will go into effect on September 1, the New York-based asset management firm said in a memo to employees.
Warburg Pincus is bumping pay by up to 30% for analysts and associates at the private-equity firm, Insider reported. The move will increase total compensation for investing-focused junior workers, meaning base plus bonus.
Employees learned of the increases on an internal call this spring, according to a source directly familiar with the situation. Warburg explained the raises as a move to bring comp in line with market rates, the source said.
First-year associates at Warburg receive total compensation north of $330,000, according to user-submitted data from Wall Street Oasis.
Apollo is offering six-figure retention bonuses to some of its private-equity associates after several young executives quit the firm, Insider reported in March. In an effort to stem the exits, Apollo has extended $100,000, $150,000, and $200,000 bonuses for first-year, second-year, and third-year associates, respectively, to be paid in April, according to two people familiar with the matter. The bonuses come with the stipulation that associates stay with Apollo at least until September 2022.