Global Markets Pay Raise?
I know a lot of banks have been raising salaries the past few months. Curious which banks markets/S&T got a pay bump in addition to IB. Additionally wonder if anyone has heard anything about banks that have yet to do anything
There is a reason everyone knows the rainmaker Bankers, and no one can reference an amazing / rock star trader these days. Volcker rule killed S&T.
Mark Spehn just earned Deutsche Bank $1 Billion on one trade (Zim Shipping), and he's hardly the only trader with a huge P&L (also see Tom Malafronte in junk bonds, and Anthony Dewell in energy, etc.). If that doesn't qualify as rock star, I don't know what to say. And he is hardly the only trader who has brought in 9 figure P&L. I challenge you to name a single banker who brought in anywhere close to this in the past decade. Just look at the regulatory disclosures for highest paid employees, its mostly star traders, not bankers. And many of the best leave for hedge funds like Citadel, and Capula, or start their own for true outliers.
Investment banking may or may not be better for the average analyst (hours are much worse and less interesting, exit ops outside of finance are better, job security is probably better), but rockstar traders make much more than "rockstar" bankers, are promoted younger (Kunal Shah joined goldman rates trading, made md by 27, partner by 31), and bring in more P&L (and at most banks, its fixed income trading that brings in the most revenue, not M&A advisory, both in terms of revenue share, and especially in terms of revenue per head).
Bofa Just raised Pay for markets & research to 100k, matching bankers
Goldman Sachs also now confirmed to bump salaries across FO to 110k. That makes JPM,BOFA and GS so far to have increase S&T comp. Any news on the others, any of the euro's moving?
Most sell side traders and salespeople are finance and econ majors who like markets and enjoy the environment that a trading floor offers. They may be able to do some basic programming but that is not what is going to determine if they can succeed or not on the floor. You are totally right that banks are not getting the STEM kids like they used to but that is more of a function of lack of innovation due to the regulatory environment than comp. Banks are not innovative like they were pre-crisis and they generally lag in terms of technology. If you are a talented STEM kid you are going to have a ton of places to use your skills in a more interesting way than a bank, that was not necessarily the case pre-crisis. You are also right that the business is not growing but the industry as a whole is not exactly in "growth" mode.
In S&T you don't hire analysts because they can do analyst work, you hire them because you think they can become a revenue generator within a couple of years and that is how you get paid in S&T. In banking most of the analysts leave after 2 years and even fewer of them actually stick it out until director or MD when you actually have a revenue number next to your name. The banking analyst should get paid more, its more hours and what is done by the banking analyst is actually valuable to the transaction process vs an S&T analyst who is doing the grunt work and being paid to learn.
If you are trying to optimize for income early in your career you should be a banker/PE but if you want to make a nice living, get some autonomy early in your career (most associates have their own trading books/client lists and only have to do a bit of grunt work from time to time) and actually have a life then S&T might be a better fit for you. The people that stick around in S&T are not the type of people who would even consider banking no matter how much more it pays at the junior level. Not saying one is better than the other but they attract very different personality types.
really interested to see where the European banks stand... Talent will go to the American banks if they don't follow...
interested... ***looking at you*** barclays and DB
Tailwind for anyone going into S&T, really awesome news that these raises are happening.
Not saying it's a perfect role by any means, but you know a lot of WSO IBers were hoping banks wouldn't implement raises for junior talent in markets so they could jerk off over how S&T is dying and validate to themselves that they made the right decision. Fact is banks are putting their money where their mouth is and that says a lot about how these places see S&T as a business; I tend to err on the side of viewing that as validation instead of taking to heart what seniors in college who can only cope with working by 100+ hours by putting down other professions have to say about S&T.
Why would Citi raise? They have a racial audit to do; stop being so selfish!
In all seriousness, they sent an internal email about it. To reverse the pay gap, they decided new An1 S&T would be $100k for women and $79k for men.
Who the fuck would join Citi/Barclays when you could make 20% at a better name brand and bank in Ms/Jp/Gs. GG with the talent war lol. Even more important for S&T than IB considering we aren't ppt monkeys