It's Time for a Base Raise
The World is getting extremely expensive, and I'm tired of barely having enough funds to take my fiance to Detroit or Cleveland.
On a serious note, with all the competition from other fields, it's time banking raises Base Pay by $25k for analysts through VPs, especially given the lack of job security.
Anybody else feel the same way?
Lol. Asking for a raise when the market's dead and banks are laying off. When the alternative of tech is looking bleak and opportunities there more sparse.
I want a base raise but I don't think we have much leverage right now.
I’d say that’s ridiculous given that base for analysts 1s has risen from $85k -$110 in 2 years (many places $120)
And even crazier considering banks are laying people off just to cut costs, because deal flow is super low
But when looking at how much investment bankers made back in the 80-00’s I get upset
Sure, but historically, the main thing Banking had going for it was best comp. With that now almost gone, what is there? Prestige? Lol.
Other fields are eating into high comp at an alarming rate , so much so that the recent increases already feel stale.
Also, this spring cleaning layoff season is moreso an indication of the continued horrible culture moreso than lack of deal flow. No way some of the smartest finance people in the world didn't potentially anticipate deal flow to slow after rapid growth / hiring during 2021.
Six figures ain't six figures anymore - it's time for more Base Pay.
lol
HL is raising salaries this August
They were significantly compressed prior to this bump. They’re only matching the street.
Is this confirmed or are you going off that other thread
It is confirmed that salaries are under revision. What is not confirmed are the new bases
I think OP has got a point here, don't think it's going to happen for another 2 years because of deal flow, but a base hike is coming due because of inflation over the last 2 years and while tech is laying off consulting is paying base salaries higher than banking at the moment, give it some time and more talent will flow to consulting forcing banks to raise base.....agree that inherent job instability requires a higher base than all other fields
Hear your point but all in comp is still way higher than consulting and there are tons of interested candidates as usual. Unless banks over fire here, I see no need for this. Think about how many laid off analysts are out there going to work for “lesser” firms
Not “way” hiring than consulting - source EB analyst with friends at MBB
It’s more than double dude… how can you be an EB analyst and not think you’re paid well relative to MBB
Seeing where a lot of people who left CS have ended up... Yeah the market is brutal rn
>lack of job security
>it’s time they pay us more
You don’t have job security in fields in which you are overpaid
Why is there a lack of job security in IB right now?
Somebody doesn't understand basic supply and demand economics.
Why would we get paid more when we are in a surplus vs the number of jobs.
Idiotic statement.
I think OP and others at least touched on a displacement of supply towards other fields (e.g., tech/SWE), hence a need to raise base pay to make banking competitive. Evidently, the current salary is still competitive enough to keep the target machine churning out bankers and doubt that it will change in this market...
hope you are fine with another 10+ years of garbage interns/analysts as the ones with actual brains continue to leave for better jobs 👍 its just basic supply and demand
Okay intern
Lol the deals will still get done. Please understand marginal differences in quality of interns and analysts aren't deal breakers
It’s the director and MD levels that probably need a base raise. Don’t think they got one with everyone else
From what I understand, base was raised in 2009 from 60k to 70k, 2014 from 70k to 85k , and 2022 from 85k to 120k. By that pattern, I guess the next raise will happen in 2027-2030? Complete speculation
It's based more on market rates / inflation / when they need to incentivize people to stay, rather than a base raise every X years. But totally agree raises aren't coming anytime soon, ex some black swan event like 2020/2021 that shot deal flow through the roof
The 2021 base raises were instituted because they couldn't hold onto juniors whatsoever - and they way outpaced even current inflation (unlike just about any other field) so not sure what people are expecting here. No public company is going to needlessly juice their comp when they have a total surplus of juniors. In fact most places would be fairly happy if a few more people left on their own right now.
The big catalyst for the 2021 raise was the G13 as well. Really shined a light on the problem you mentioned.
lol what is the g13? Edit nvm I realized you meant the Goldman 1st year class with the presentation lol. I forgot.
It's time to lay you off
I hope we get a base cut and return to the USD85k era with 24 months bonuses.
Current base + low bonus just pushes firms to lay people off instead of adjusting bonuses base to keep people. Things become more and more toxic
And exit wise it is much harder to convince your future employers you are willing to join with such a steep paycut when you are flashing USD140k+ base
Lol what is this Reddit gen-z shit? Base has ~doubled from like a decade ago.
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