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. (JPM), Bank of America Corporation (BAC), The Goldman Sachs Group, Inc. (GS), Citigroup Inc. (C) and Morgan Stanley (MS) 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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