I see all these banks have raised the base salary for IB Analysts and Associates, yet I haven't seen any bank raising the S&T base salary. It's quite unfair since base salaries for S&T and bankers have somewhat been in line at the junior level. Any thoughts on that?
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Retention — juniors aren’t dropping out like flies in S&T as in IB. That, as well as the domino effect of one bank increasing comp, is the reasons why all banks have raised salaries.
IB juniors were really struggling with WFH and increasing hours due to lack of separation between work and home in addition to increased ease of hopeless pitching at the hands of MDs due to virtual meetings. S&T just doesn't have the same type of hours or endless expectations to be on call working powerpoint all night
supply demand, as simple as it is
Isn't the supply of junior bankers higher than the demand? Looking at the acceptance rate for bankers (2-3%), it suggests that even if someone quits, there would be 97-99 people willing to replace him, so banks could have maintained the wage (the domino effect is probably the reason why they raised it). Also, you only need accounting and valuation fundamentals, which you can pick up in 2 months, excel and ppt. Whereas in S&T, some divisions require you to know probability theory. Is the pay gap an indicator of a lagging/shrinking S&T industry?
I think you’re underestimating the supply of skilled analysts. Sure, there are 100 people willing to take the spot of the analyst who quit, but only 10 already work in IB and don’t need a ton of training. The firms don’t have 2 months to train people, they want someone who can hit the ground running.
So in that case why did they increase the first-year salary (if they're just starting and need that training)? Do you think it's just to keep it in line with the 2-3 year salary? Just trying to understand
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