• Firms on Wall Street are struggling to retain talent amid the pandemic and competition from other companies.
• Entry-level employees are getting big starting salaries—$100K and up.
• Bonuses are now $25,000 to $200,000 depending on how long you’ve been at the firm.
Challenged with a shortage of junior bankers, Wall Street’s biggest banks are muscling it out to find and retain talent by offering staggering salaries at entry-level and mid-level positions.
As first reported by Business Insider, here’s how some of Wall Street’s biggest firms are raising pay in 2021 (in alphabetical order).
The global alternative investment manager firm reportedly had several young executives quit earlier this year, which has Apollo diving into its deep pockets to make new hires that can ease the load on current workers.
Apollo is offering associates bonuses between $100,000 and $200,000 based on how many years they’ve been with the company, Insider reported. Associates will have to stay at the company until September 2022 to receive the payouts.
Bank of America
Associates and vice presidents in Bank of America’s US investment-banking sector will see pay raises by $25,000, the report said, citing sources.
Analysts will also get a small hike of $10,000.
Investment-banking analysts will get a $15,000 base pay raise, while associates and vice presidents will get a bump of $25,000, similar to Bank of America.
Employees at Barclays were expected to see the raise by July 1, Insider reported.
Bloomberg reported that Centerview Partners is offering a $200,000 retention bonus to junior bankers in June, as it looks to control turnover.
There is a caveat: employees will have to stay at the company for at least two years, sources said. Additionally, the company is looking to adjust its vacation plan to allow junior workers to actually enjoy their break rather than being forced to work during paid time off.
Insider reported that raises will range from $15,000 to $25,00 depending on job title. Citigroup’s analysts, associates, and vice presidents in its banking, capital marks, and advisory decision departments can expect to see the payments in August.
The Swiss bank will dole out $20,000 bonuses to several junior and mid-level workers. Credit Suisse already bumped up salaries for higher-level workers earlier this year, while relaxing its dress code.
According to a person familiar with the bank’s plans, Deutsche Bank is raising analyst pay by $15,000.
Bloomberg first reported that the bank will pay its first-year banking analysts $100,000 and second-year workers $105,000 in the US for their base salaries. Global workers can expect similar percentage raises, according to the report.
A branch of Guggenheim Partners, Guggenheim Securities will bump pay too.
Effective July 1, first-year analysts will see their salaries raised from $85,000 to $100,000 per year. Second-year analysts will see their salaries go from $90,000 up to $110,000, and third-years will see a bump from $95,000 to $125,000. Associates, meanwhile, are going to receive $25,000 raises.
First-year associates will see pay go from $150,000 per year to $175,000. Second-years will go from $175,000 to $200,000; and third-years will go from $200,000 to $225,000.
After a difficult year, Houlihan Lokey is rewarding junior workers with competitive compensation and perks. Insider reported that first-year analysts in the US are being offered $5,000 base-compensation increases, a $10,000 bonus, and an all-expenses paid vacation.
Anyone want a Peloton?
Perhaps the most tame package of all the firms comes from Jeffries Group, which offered its junior employees the popular fitness electronics for their hard work over the past year. Employees could choose a Peloton workout bike with a one-year subscription; a Mirror workout system; or a slew of Apple products.
Junior workers at the investment banking firm will now make $100,000 before the bonus, according to the report.
Moelis & Co
The boutique investment bank told juniors they would receive a $10,000 allowance and will try to allow for more time off for mental health, Financial News reported.
Bloomberg reported the financial firm will raise salaries for bankers as its competitors try to poach talent.
First-year analysts at PJ Solomon will now make $100,000, while third-year associates will rack in $225,000, the report said.
RBC Capital Markets
Litquidity, a popular Instagram meme account, reported RBC Capital Markets is hiking analyst pay by $10,000 and associate pay by $20,000. The company will also mandate other changes, including fewer video calls and more vacation time.
Corporate and investment-banking analysts and associates at Wells Fargo can expect special bonuses of up to $20,000, according to the report.