Goldman Sachs is raising salaries for second-year analysts to $125K and first-year associates to $150K in its investment bank

David Solomon goldman sachs

Goldman Sachs is raising base comp for some junior investment bankers, Insider confirmed on Sunday night.

Second-year analysts will now make $125,000 in base comp before bonus, two people familiar with the situation told Insider. First-year associates will now make $150,000, the two people said. 

Junior bankers are said to have learned about the raises on Sunday by viewing new information posted within the firm’s internal human resources portal, according to the two sources. Both individuals requested not to be identified discussing private information.

Insider verified the information by reviewing screenshots from within the portal. No formal announcement or memorandum has yet been sent to employees, said one of the sources.

A spokesperson for Goldman Sachs declined to comment. 

It is unclear what other levels within the investment bank have also been given salary bumps.

Wall Street has been raising comp for juniors

The investment-banking community has been watching Goldman Sachs closely to follow when a move on salary might come, as rivals like Morgan StanleyJPMorgan Chase, and Citigroup have already shifted base comp for junior bankers upward throughout the spring.

First-year associates at UBSWilliam Blair, and PJ Solomon have also recently seen their base comp go up, Insider reported in July. Associates at those firms will receive a salary of $175,000 before bonus, putting them ahead of Goldman’s first-year associates, under the new salary scheme.

At Morgan Stanley and PJ Solomon, second-year analysts will earn $105,000. Second-years at Guggenheim Securities will earn $110,000, and at William Blair, they’ll earn $115,000.

All eyes have been on Goldman Sachs during Wall Street’s pay raise frenzy throughout the spring and summer. The firm’s culture in regards to junior employees first came under scrutiny in March, after two leaked presentations made by Goldman IB analysts shined a light on what they called draconian working conditions throughout the past year from home.

Since then, Wall Street’s biggest banks — JPMorgan, Morgan Stanley, Citigroup, and Bank of America  —have raised junior banker salaries. Some Goldman analysts told Insider in July that the firm’s reluctance to make a move on salary had stoked consternation at junior levels.

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Reed Alexander and Samantha Stokes August 2, 2021 at 08:15AM

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