Most of my friends are at EBs so I'm already the poorest in my friend group, but now many of these firms are raising base salaries so that difference is going to be exacerbated. Saw Guggenheim just bumped salaries for juniors across the board and now I'm salty af because my firm hasn't done shit despite having arguably the worst work conditions.
How many of you are worried about inflation? Firm wants us to come back soon so I'm worried about how far my peasant salary will go in NYC. /s
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On a side note I'm shocked Guggenheim did this, given (1) their position in league tables (barely top 30); (2) the fact that analysts and associates don't bring in deals; (3) their analyst classes are already 50+ people; (4) they already pay above street to my knowledge; and (5) other firms in their tier aren't doing anything this extreme. At ~$20k increase, that's roughly $3mm across 3 analyst years, assuming bonuses don't adjust downward to keep total comp the same, yet it doesn't allow them to bring in any more deals and doesn't reduce the workload for current analysts/associates. Wouldn't it make more sense to hire 15 more analysts in that case (assuming $200k set aside for comp etc)?
I understand firms like Centerview and Evercore paying as much as they do because they're consistently top 10 in M&A and run very lean, and in the case of Centerview they lock in analysts so it's more of an investment for them, but I just don't see how it makes sense for Guggenheim. Maybe I'm projecting because, again, my bank hasn't done shit , but I feel like total comp will remain the same and the increased base salary doesn't actually mean anything (for any of the firms doing this)...
Well, gugg wants to grow. To grow you need the best people. To get the best people without the prestige of goldman, you need to pay them.
the way you attract top talent if you can’t lure ppl with prestige and a ton of deal flow is through pay. and then hopefully this is an investment that pays out as higher talent will help to increase prestige and deal flow.
I'm 100% on board for salary and comp increases :)
Modestly worried about inflation for sure.
Inflation in what? If the kids earned the pay increase they earned it. Doubtful gugg would just hand out charity to its employees like that
I think they're referring to inflation in general. Judging by the username I'm guessing OP works at a certain BB that hasn't raised salaries, so they're probably worried that their "peasant" salary won't go as far when they get back to NYC and at the same time they're clearly insecure about making less than their friends lol.
On the Gugg point I'm with OP. The "if the kids earned the pay increase they earned it" point is moot (see: GS, where the issue began and where work conditions are probably the worst) because at the end of the day Gugg and all the other banks care about making more money. I can confirm Gugg already pays above street (though not Centerview levels), so I don't see how total comp will increase (i.e. salary goes up but bonus goes down). You're right that Gugg and other banks aren't going to just hand out charity to their employees, which leads me to believe that the salary increase is just a PR thing and that total comp will be unchanged. That being said, I'd actually prefer to get more upfront in salary vs. in bonus at end of year even if the total comp remains unchanged.
Can the GS kids quit? If the kids are good they’ll get a raise whether Gs pays them or not. It’s possible they GS just got a lower quality haul than gugg did
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Seems high
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Yeah ok looking back at this I was clearly very salty about my position relative to my friends and getting crushed on a few deals lol. Didn’t mean to single out a particular firm, though I definitely see how it can be construed as such. Shoutout Gugg, BAML, RBC, etc. for doing right by their junior employees and hoping certain other firms with poor cultures can at least do something constructive
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