GS increases analyst base
To 85k for first years effective January. Bonuses will not be affected.
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Well in that case congrats to all the GS analysts on here :)
Just wanted to confirm this. Our summers who got offers have been told.
Woah woah congrats y'all!
returning SA confirming; base 85k + signing 10k + bonus 35k (unclear if bottom or median bucket, but same as last year)
Wait what about for full time hires who are in training right now? Is this only for summers who just got offers and after?
I think it's only the class that just received offers, since full times in training now will have signed their offers a year ago.
awesome news. congrats to all of you at (or going to) GS, you lucky bastards.
Don't worry. That number will become "street" soon and other BBs will follow, just like weekend work policy.
That's quite an increase but how does that work for people that just became 2nd years... what rate did they get put at?
I assume this is up from 70? MS offered its returning SAs 70 base. wondering if the other BBs will follow
looks like all in comp is unchanged though, 120-140 across the street.
70K for those who just started this summer; and 95K for 2nd year analysts?
I wonder why.... ;)
Changes are effective 2015 so current first years will get a raise at that point. From 2015 onwards, all analysts will move to the 85/95 etc system.
As an aside, a bonus guidance of. 35 is too low for ibd classic.
Thanks man! You are amazing for bringing this news to us all hahahahahaha
What bonus guidance would you say is more accurate? I was told 35 but also thought that was low. Was thinking the 35 may be bottom bucket, so a conservative number to tell us.
Top bucket was 60k in my group. Average was 40-45k.
Is this just for ibd? Or do other areas get raises too? Like imd, tech, etc?
lmao
sorry but can non IBD people confirm? i got a returning offer for 70
wow bonuses in IBD arent what they used to be... 35K lol
For those who got return offers in IBD, what were you told? I was told 70k (IMD).
was this a full-time offer 70k? or Junior SA?
I've heard 85k base with 35k bonus. Does this mean bonuses are capped at 35k regardless of performance or is that the minimum an analyst could make pre-tax?
Anyone know if other firms are bumping too i.e. JPM?
If you have read any BBG articles this week you'd see that this is happening across all banks. I believe as of now it's just IBD, but I could easily see it flowing through to other divisions. Being in private banking at a BB, I sure hope so.
non IBD here, can confirm that increase in analyst pay for GS is cross division (at least all FO)
hope you dont mind me asking but are you in securities or imd?
Recent WSJ article on most BB either increasing or considering increasing ALL junior banker pay by 20-25%. SA analysts who get offers now get it now, those who are just now starting will get the bump in NEXT year's pay, not right now. If you think about it the SA's get this technically next year too when they start in Aug 2015.
Can't post link because I'm a new primate.
Article sites increasing competition from Silicon Valley
It sounds like raises are only for IBD, S&T, and Capital Markets.
At least at my BB, top bucket was 65k for 1st years.
All in for top bucket (10%) would be 85k + 10k + 65k = 160k
Yeah, I don't know why people feel the need to post numbers they're unsure about.
Many people don't know that top boutiques pay out 70k + 70k or 80k + 80k with ridiculous signing bonuses that put all-in comp over 200k.
WSJ article also cited the BAML death of intern Moritz Erhardt as an inducing factor to increase salary and reduce hours.
I can see Erhardt being the motivating factor for the hours reduction/Saturdays off, but that was a full year ago and only now are banks going from 70 to 85. And it's not like an extra 15k would have saved his life anyways.
The real reason is the banks (think they) are losing talent to the Googles and Facebooks of the world-while IB is still prestigious, what I think a lot of people here fail to realize is that its no longer the "it" job for college grads. There will still be people (like most of this site's userbase) who want to go into IB and finance, and many of them will be very bright and motivated, but investment banks, particularly the bulge brackets, pride themselves on having the "best" graduates out there, and this is an attempt to maintain the former status quo.
tl;dr Lloyd hopes he can buy popularity with college seniors
Really hoping my bank follows suit... just signed.
I heard bonuses were effected according to an article I saw yesterday about BAML and JP making the same moves. I've heard first year bonuses are typically around 50k so if you add 15 to base and take away a potential 15 from the bonus, looks about even folks
They may lower bonuses slightly, but I'd still prefer the $85 + smaller bonus than the $70 + today's bonus (assuming the difference is an equal dollar amount). Just your standard "Lottery payout" problem. A dollar today is worth more than a dollar tomorrow. Also have confirmation that Wells Fargo has bumped next year's first year FT offers to $85 starting in June (the normal bonus cycle).
Yeah I agree, I heard the same. Other firms are probably in talks of the compensation change, I know one in the top 10 for sure is discussing it but it hasn't been formally announced yet
Yeah I would be curious to hear if this would also flow to MO positions as people gather insight?
Every GS satellite branch too ?
.
More money to blow at PhD
^ Literally BLOW at PhD, haha.
Historically 2nd years have not gotten a bump at the same time as first years.
If you are currently working as a first year, you may get a bump.
I anticipate that Manhattan rents will go up $300/mo or so as street moves from $70 to $85.
Also starting salary in tech is a lot higher than IBD And the value of the stock options in tech is probably comparable with bonuses in IB. If they can move starting to $100 or 110, GS might be a little more competitive.
I honestly don't think they're trying to keep up with tech- I think they're simply trying to make sure an IBD analyst can survive after paying $2500-$3000/mo to split a two bedroom in Manhattan.
Not sure why you got shit thrown at you. Makes sense that would happen. It appears to me that they are simply moving money around from bonuses to comp, giving you more to live on rather than giving you a massive lump at the end. My firm started doing much the same thing (albeit with much smaller numbers involved, haha).
I think comp is actually just on the rise. BAML is also increasing comp but top bucket bonuses this year were ~75K, on par with / a little more than last year. I don't think they'll be making in huge decreases in bonuses next year, even with base salary rising. Among a few other factors, it's just a great time to be in banking, given the entire 2008 period.
There are still BBs out there with a base of 75k and a bonus of 20k, so don't get your hopes up too much if you're not at one of the banks that's raising base salary.
Which BB ever paid a 75k base?
Convert GBP to USD at mid spot. £45k is about $75k USD, so every UK bank pays about $75k USD.
That's true, two weeks ago still was 45k pounds (75k USD). Wonder if that's going to go up as well.
For those who have seen this in the past, how long will it take for other BBs to follow suit? Can we expect 85 for all 2015 first years at the major banks?
I believe the COL has been increasing in NYC, this is nothing more than keeping up with costs.
No whispers from CS, Barc, UBS, WF, or DB?
I wonder how long it will take for tech and consulting to increase their bases to avoid losing a lot of talent to IB...
What about international offices (London, Hong Kong, Singapore)? Should we expect something similar?
Is the raise firmwide or just IBD?
Man these 1st years just need to bribe an IT guy to give them access to a top C level employee to send an "official" email about pay raises then leak it. Seems like an easy way to make them pay you more.
I remember last year, when everyone on this board was chastising banks for cheap lip service to "fake" weekend policies. When it turned out the banks were serious about said protocol shifts, everyone was certain a steep drop in compensation was on the horizon. And, to the surprise of no one, with these base hikes, everyone on this board is racing to adopt the too-cool-for-school WSO melancholy, prognosticating like-for-like decreases in bonus, rent hikes in NYC (is this serious?) and continued talent drain into the tech field.
It really is astounding to me that everyone here feels the need to smother every last iota of good news. Banks are nothing but beguiling despots, anxious to hoodwink the next group of unexpecting college grads. And, of course, you're just too clever to be so deceived.
As I did before when weekend policies were first announced, allow me to be the sole optimist on this board and suggest that (perhaps!!) this is another step in banks' larger attempt to improve the lifestyle of young finance workers.
This in the context of GS lowering compensation expense (at 37% of revs. vs. 42% in 2012)
Seriously, I'm surprised as the pessimism. Either way, banks are trying to up compensation and enhance work/life balance. I don't see how they could feasibly decrease bonuses without experiencing MORE attrition to the buyside. Retention was a common theme in all of my interviews when asked "what do you plan on doing after your 2-3 years are up?" and I see this as a step in terms of increasing retaining talent internally.
I've heard rumors of the increases happening in Jan/Feb 2015 for current analysts, and even heard some people discuss the possibility of backpaying you for the 6 months prior (July-Jan) where you weren't making 85k prorated. Even if that doesn't happen, a salary increase is a net positive for you. Not to mention if your firm does 401k matching, higher base salary = more free money (albeit only around $750).
WF changed to 85k, so did JPM.
Does this only apply to FO or MO/BO as well? No one seems to have answered or knows at this point? I would hope it applied to everyone then IBM would get bigger bonuses still etc. Thx if anyone knows.
Morgan Stanley just sent an email about 30 minutes ago increasing IBD North American analyst base pay to 85k as well.
Curious if the email mentioned if the hike would start in January or on next year's pay cycle?
Have JPM employees received an email?
anyone?
Anyone in a non-IBD role receive the pay bump? If so what group?
Would like to know this as well
You mean analysts that were at the 65k who started 1.5 months ago have had their pay increased to 85k? GS...sweet gig.
65 is under street. and GS paid 70k.
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