Pay Increases for Junior Bankers, a Growing Trend?
This summer, a few banks announced they would begin increasing salaries of junior bankers but only a few banks. Is this a trend that will spread to all banks across the street just to compete? Will this pay rise be enough to attract more people towards finance than Silicon Valley?
Love to hear everyones thoughts
It'll be interesting to see does a pay war develop between Silicon Valley and Wall Street as they both try to lure the best talent. As one bank raises their analyst salaries eventually all will follow at some point to ensure they're competitive.
For the ones who are going to Wall Street for the money... yes. For the ones going to Wall Street or Silicon Valley out of interest/motivation... no.
I'm wondering if we can get an economist's view on this 'base pay rise' in terms of inflation or other macroeconomic factors (as there has not been a base increase for a while now).
Do tech companies and silicon valley really compete that much? Maybe the fldps for tech companies and a few select corp dev spots but at least at my school the IB kids and the software developers/programmers are EXTREMELY different in personality and desires.
There are plenty of other roles at tech companies that require similar skills that are developed in IB so yes they do compete. I'm surprised that most of this forum thinks the battle is between IB and software developer/programmer roles (not trying to point you out specifically, just something I have noticed on the forum). It also depends what you mean by IB. S&T/quant skills are transferrable (particularly the programming aspects). IBD skills are transferrable (data analytics, sales/revenue or financial analysts etc). Consulting is transferable too (internal consulting roles/teams at tech firms). That said - most of the the roles in tech firms require experience - so perhaps they are competing after a year or two vs directly out of undergrad.
Same at my school. Can't perceive those GOOG/FB types chasing Wall Street jobs. Nope. Not gonna happen.
I've met several people who work at a large tech firm who have finance degrees who dropped it to become a coder. When asked one of them recently why they dropped finance the answer was word for word 'I didn't want to be an investment banker"
I think they are similar but in another way.
This is anecdotal for sure, but had I known what the tech scene is like now exactly, I would've gone into CS (or at least seriously looked into it) starting as a freshman in college at the latest. In the late stages of high school I had my eyes set on high finance but looking back I would at least want to see what options tech would have for me.
I think investment banks are battling two different battles. The first one is acquiring talent and the second one is retaining talent. The first battle refers to top candidates lured away by technology firms who offer competitive pay, more relaxed lifestyle and the most coveted item of them all, stock options. Additionally there is the usual competition from other type of finance firms, consulting, etc. The second battle refers to retaining their best talent from moving to the buyside.
The weekend policy combined with the increase in pay could have analysts thinking twice before they move to the buyside.
Lol it works. I am definitely considering my return offer more strongly now
For those going to Tech, what are the odds the market starts to over-saturate with tech employees, right when the bubble bursts?
Where does that leave you then?
Weekends off and to a lesser extent a true 20% pay bump (assuming bonuses aren't shaved to offset) can be a meaningful difference towards making the first few years of banking more palatable. In my opinion, the biggest turnoff about working at a bank from a junior level is that the industry is shrinking. Every month you hear about layoffs, and you see the pressure as people are squeezed out. That's very demotivating. Instilling the idea that the industry can still raise pay is more symbolic than anything else.
This certainly doesn't reflect my experience
Not sure if you're referring to a specific bank, but speaking for the industry as a whole, I think the worst is behind us.
whats the new pay range like? 100?
With bonus it should be about ~140k for first year analysts.
What about 2nd and 3rd year analysts? is it now 85/95/105 for analysts?
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