In order to prevent defections and retain talent, Wall Street
biggies are planning to hike the salary for their junior staff in
the range of 20-25%. Some of the banks including JPMorgan Chase
& Co. (
), Bank of America Corporation (
), The Goldman Sachs Group, Inc. (
), Citigroup Inc. (
) and Morgan Stanley (
) have either already announced the raise or are planning to do so
in the coming months.
Goldman intends to give a pay raise to several junior analysts by
roughly 20%. Notably, only analysts working in the U.S. are
eligible for this hike from next year on. Moreover, this move will
not impact bonuses that are paid at the year-end.
Further, BofA and JPMorgan are also planning a 20% hike in the
salary of junior bankers. Nonetheless, the raise in these to
companies will be applicable to all the junior bankers across the
globe. The rise is expected to take effect in 2015.
While these banks including Morgan Stanley, which intends to
increase the salaries for mid-level and junior bankers by 25%, have
already planned to reward their junior bankers with a raise,
Citigroup is still contemplating the move.
Apart from salary raise, the banks are also trying to improve the
working conditions of their junior bankers through work-life
balance strategy by limiting working hours and offering better
compensation. The decision to increase salaries, taken by these
Wall Street banks, at a time when many of these banks face
increased overall expenses depicts on-going efforts to prevent loss
of talent to the competitors that include other banks as well as
private equity firms and hedge funds.
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