SA 2022 Pay Bump

I am an incoming SA for a middle market bank in Chicago. Currently, I am still signed at an 85k base for this upcoming summer.

I have heard multiple others who are also incoming SAs at different banks that originally signed at the 85k base but then HR reached out and they have had their bases raised to meet the new salary bump banks set back in 2021.

My question is, should it be assumed that it will be changed as we get closer to summer? If not, would it be negatively looked upon if I were to reach out, ask and be proactive about the situation! I am 100% certain my bank has raised since I have signed. Just curious on what people's thoughts are and how I should go about it.

 

Risk vs reward

Do not reach out. You signed and planned for $85k. Budget for $85k. If they tell you it is more, will you do anything differently? How impactful would that money be to you (in terms of prepping for the summer)?

If they tell you they didn’t raise, it’s not like you are going to try and jump to another firm. 

The risk is that it makes you look bad (even if in a very small way) and the reward (as far as I can see) is very small. They’ll communicate changes as they see fit. 

 

I think these are very good points and I am not going to reach out (risk far exceeds reward in the short term). I'm going to budget 85k.

However the incremental money is the difference between taking on more loans or being able to afford to pay for my senior of college (I mean who knows anymore with rising prices and how much that'll eat into my earnings). Either way, I do believe it will be in the back of some peoples mind when full time rolls around and will be noted by the analyst class of 2024 who are currently recruiting. I know a decent amount of underclassman who have reached out to me with multiple offers trying to make a decision currently. It's still a battle for talented and something like this doesn't look the best when your cheeping out your SA class compared to your other two biggest competitors SA class.

From you perspective do you think they will/should raise to match their competitors? Or I am just making to much a fuss right now because it is affecting and it's not a big deal.

 
Most Helpful

I understand your point on loans, I graduated with a decent amount and understand how that can be a stressor. That being said, if you end up saving more, you can always pay down more of your loan. Not ideal, but should help alleviate that concern. 

As for whether they will match, my guess is they would (disclaimer: random guess from person online, don’t make financial decisions based on this). Similar to how I told you to think about the risk vs reward, it is similar for them (from the cost side). Raising the comp is a very small expense for firms and the risk if they don’t is they end up hurting their brand on campus and suffer in recruiting (big negative vs small cost). I know everyone runs around saying “just shut up you are an analyst, you are all replaceable”, but a firm’s reputation at a target school is important for attracting talent (and you don’t want your SA class taking other offers because you didn’t match competitors for a few months over the summer). As you said, it is tough to hire right now. 

And finally, don’t make decisions just based on compensation. Look at how the firm handled changes, look at policy, but also find where you fit in best, where you have the best opportunities, where you like the team. The job is tough, the small pay diffs right now are mostly meaningless (and sometimes can point to terrible work life balance), you’ll make more in the long run this way. 

 

Current sophomore curious about SA pay... they're giving you 85k base for your 10 week internship? Plus a bonus?

Or is the 85k base figure annualized, so since you intern 10 weeks you're going to earn ~16k base?

 

He's probably calculating what his 'pro rated' comp is, not the actual amount he gets paid for the summer. He's likely making $1700 a week as a SA and is multiplying that by 52 to assume the 85k base

 

I know people who are making less in Boston for JPM MM. 85k pro-rated for Chicago may be the best you get, might be 100k in NYC but I would be surprised if they bump you again. 

FYI I am in the same boat as an incoming SA.

 

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