Global Markets Pay Raise?

Its absurd also considering markets pulled all the deadweight the past year.

Probs a good course of action

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

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. 

Last year, the answer is yes. Market makers make money when the market is volatile and there are many conflicting views. This means banks see a decent amount of two-way flows and the spreads clients cross are wider. This was the situation in 2020, where every capital markets group essentially killed it. Hours weren't longer, but the days were much more intense. 2021 it's not the case as much, volatility is a bit lower and flows are a bit more one way.

Anyways, as I'm sure you've probably seen, S&T banks across the street have given their analysts (at least) raises. Most banks started by giving IB analysts raises, until JP decided to give both IB and WM raises. Capital markets was upset, JP had to give them a wage increase as well, and then the rest of the street followed. For what it's worth, JP fucked up, and I don't think I should've been given a raise...but I'll take it. 

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).

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.

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

RBC? 

Know what the previous and new numbers look like? At least for Analyst and Associate levels?

gs AN1 110k for S&T????

they better or im going to jpm lol

I'm at JP and no, we haven't heard anything.

GS about to come in and big dick em

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

my offer for SA says 85k 

Did they bump other levels or just Analyst?

Still potential for that to change though, no?

65k GS/JP/MS for markets AN1

edit: MS: 70k for all FO. GS 70k for IBD

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

Finally a good comment about S&T. So happy. :)

Hopefully other banks follow suit. I’d have to re-negotiate my offer lol

Could we expect other banks that raised IBD salary to follow suit?

What is bonus for GS S&T?

110k + ?

Soc gen is increasing to 100k for s&t

110k for AN1?? thats a big jump from 85k

any announcement in non-gs ib divisions internally yet? st, er, wm, am? when it will go into effect etc

JPM Markets Analysts will not see any realization of the 100k salary raise til next year.

Was this explicitly said, or they havent talked about it yet?

Nothing yet but I'd imagine it's coming. Pleasantly surprised to hear the news about other banks bumping comps. I think it is a good sign for anyone pursuing a career in S&T. 

Why the hate on citi?

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)

.

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.

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.