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

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Comments (125)

  • Analyst 1 in ER
Jul 29, 2021 - 5:22pm

The difference between markets/ER and IB is getting a bit ridiculous at this point..... 

  • Analyst 1 in Research - Other
Jul 30, 2021 - 9:10am

Would really like a raise but not holding my breath, just going to aggressively recruit for buyside earlier.  Lots of people leaving over the past year for similar reasons.

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  • Analyst 1 in S&T - FI
Jul 30, 2021 - 2:22pm

Yeah man I am looking for answers from people who are actually in current roles at a relevant firm, not speculation lol

  • Associate 3 in IB - Gen
Jul 30, 2021 - 2:27pm

This is a serious question that will come off as offensive and/or naive: has there been a material increase in workload on the S&T side like there has been in IB that your work-life balance is almost nonexistent? 

  • Analyst 1 in S&T - FI
Jul 30, 2021 - 3:07pm

I really just started super recently so I am not the best person to ask but at least at my firm from people who I have talked to the volume of work in general has gone up significantly but also this is simply a function of increased deal flow (I am on a structuring desk). I think the expectations about when you are reachable have certainly gone up. People in pure sales or trading roles I don't think the increase has been extremely material but obviously there was some. The way I think about these roles is your job is a lot more centered around market hours. No trader ever gets staffed on a bake-off for some merger on a Friday at 4pm ya know. 

Jul 31, 2021 - 1:08am

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.

Jul 31, 2021 - 1:24am

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).

  • VP in S&T - FI
Aug 1, 2021 - 12:53pm

Kunal started trading back in 2004, it says something that your example happened over a decade ago.

It's much easier to rise to the top when the industry is expanding, with new desks being created and new products to trade. That's where the opportunity to prove yourself comes from. In my opinion, S&T has probably stopped shrinking, but it's not growing and there's lots of sr talent ahead of you. 
 

  • Junior Trader in S&T - Comm
Aug 11, 2021 - 9:06am

LOL have you read about other kinds of S&T? Physical trading has blown the "conventional" kind of S&T that you are most likely talking about out of the water in the last few years. Read about the top phys trading shops.

  • VP in S&T - FI
Aug 13, 2021 - 5:39pm

LOL at thinking you don't run into the same issues on the physical side. 
 

lots of underpaid juniors, and people who don't start making real money until 15 years into their career. 

  • Analyst 1 in Research - Other
Aug 1, 2021 - 11:04am

  Im assuming this is scotia.  Is this the beginning though?  

  • Analyst 1 in HF - EquityHedge
Aug 2, 2021 - 3:40pm

With GS raising AN1 level to 110k (other BBs likely to follow), it would be kind of crazy if Markets roles are still at 85k lol.

  • Analyst 1 in Research - Other
Aug 3, 2021 - 8:09am

So any updates from anyone?  There has to be conversations about this going on no?

  • Analyst 1 in IB-M&A
Aug 4, 2021 - 11:15am

The base pay disparity existed long ago in associates and above level. Now it just spreads down to analysts. 

Don't think banks will match pay in the short term.

  • Analyst 1 in S&T - FI
Aug 22, 2021 - 9:03pm

Do these analyst pumps insinuate pumps at higher levels like associate level? They wouldnt have analysts making nearly as much as the associates right?

  • Prospect in S&T - FI
Aug 14, 2021 - 7:10pm

Does anyone know analyst 1 salary in S&T in London? And what will be the new amount after the increase (BofA for example)?

  • Analyst 1 in S&T - Other
Aug 16, 2021 - 10:25pm

Prop trading is still very alive at these banks. Plus we have to be on the ball the entire time we're in the office - can't afford to have any downtime like bankers usually do

  • VP in S&T - FI
Aug 26, 2021 - 9:42pm

The others will most likely wait until closer to the end of the year (when promotions get announced) or after bonuses are announced, S&T does not pay/promote its analysts at mid-year like IB does.  I think analysts and associates get a bump in base but it will come out of bonus especially once trading revenues return to more normal levels.                  

  • Incoming Analyst in IB - Gen
Aug 26, 2021 - 10:00pm

Personally, would rather higher base lower bonus (assuming net same) - allows me to budget more, easier for taxes, 401k etc

Meaning, I'd rather 100+20 than 85+35 (but yes, I'd rather 85+50 than 100+20)

  • Incoming Analyst in IB - Gen
Aug 26, 2021 - 10:05pm

If I'm a college sophomore, why would I ever do S&T if you're getting less bonus, and less base, and shrinking industry?

They'll need to raise S&T base to match IB base just to get decent applications and talent. STEM majors going to BigTech take away a lot more from S&T than from IB with the Finance and Econ majors 

Aug 27, 2021 - 12:07am

Because they get near-the-same total comp working 75% or fewer of the hours as people in IB.  Despite having technical skills, there may also be many students who are not good enough to pass FAANG-type interviews at tech companies.  IB's offer finance jobs where technical competencies can be utilized.  Seems like a win-win.

Don't kid yourself -- the whole finance industry is "shrinking", stagnating at best.

  • VP in S&T - FI
Aug 27, 2021 - 5:57pm

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.            

  • Intern in S&T - FI
Aug 27, 2021 - 8:02pm

Agree with all of the above but will note that at my US BB (GS/MS) most new hires and interns are from a STEM background. These are kids with the best grades from Ivys/Oxbridge, but just prefer to have a social overlay to technical work which in S&T you get like nowhere else.

  • Analyst 1 in Research - Other
Aug 31, 2021 - 11:47am

Yeah MS and GS have now raised All salaries for Research/Trading/Banking to 110k, JPM and BOFA have raised to 100k.  Barclays/Citi/CS/UBS/DB still quiet for raises

  • Analyst 1 in Research - Other
Aug 31, 2021 - 1:28pm

Yup, have already started putting out feelers.  If they don't match salaries at least, im gone.  

  • Incoming Analyst in IB - Gen
Aug 31, 2021 - 1:27pm

No word, have to assume associates did, otherwise they'd be making the same base

  • Analyst 1 in S&T - Other
Sep 4, 2021 - 1:27am

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.

  • VP in S&T - FI
Sep 12, 2021 - 9:33pm

While I agree there is a ton of S&T hate on this form, calling this a tailwind for the business is a bit premature.  What you have so far is a couple of banks announcing increased junior pay that will most likely not be effective until 2022, not a wide spread pay increase across the street.  I do think all the other banks will follow suit, and will raise junior level S&T salaries to the levels that they are paying junior bankers but I don't think that means all that much until you start seeing bonuses for S&T at the junior levels. 

In terms of the bigger picture you really won't know much until banks start announcing compensation per person in various lines of business.  If the total comp pool is relatively unchanged and there is not increased hiring then I have a hard time calling this a tailwind for the business and more of just a standardizing of junior salaries across various functions at the firm.  Call me a skeptic but I am in wait and see mode.        

  • Analyst 1 in S&T - Other
Sep 13, 2021 - 9:28pm

Completely fair assessment.

I'm operating under the assumption that this will cascade across all BBs across the street and that it will lift total comp at the junior levels (with less of an effect the higher you go up the chain). Wait and see is definitely the best mentality here. However I will say it's much better than if IB got these raises and S&T didn't (which was the fear for a hot second there).

Sep 5, 2021 - 8:11am

Could someone confirm if internal announcements have been made yet?

I'm in one of the firms that raised pay but haven't heard anything

Sep 15, 2021 - 8:53pm

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  • Intern in S&T - Other
Sep 22, 2021 - 6:17am

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  • Prospect in S&T - FI
Sep 22, 2021 - 9:49am

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