Goldman Sachs raises pay for junior bankers after 100-hour week complaints
Goldman Sachs is increasing pay for its junior bankers, months after graduates raised concerns over “inhumane” working conditions and 100-hour weeks.
The Guardian understands that the salary increases apply to the three most junior positions across the investment bank, with first-year analysts – who previously received about £50,000 in base pay – set to see their pay rise to $110,000 (£79,000) before bonuses. Second-year analysts are being notified that their pay will rise to $125,000, while their more senior associates will bring in $150,000.
Formal announcements about the increases – which will apply to bankers globally, including in the UK – are expected this week.
Goldman’s junior bankers are some of the last to receive any sort of increase in compensation or benefits, since a leaked report revealing concerns about poor conditions prompted rival banks to introduce perks for overworked staff. Some of the most eye-catching have included one-off bonuses of $20,000 at Credit Suisse, and free Peloton bikes worth almost £2,000 at Jefferies.
The leaked presentation by 13 aggrieved first-year bankers at Goldman Sachs claimed that 100-hour working weeks and abuse from co-workers had created “inhumane” working conditions for new hires. Goldman’s chief executive, David Solomon, has previously said he took the complaints seriously and would increase hiring and strengthen the enforcement of a no-work-on-Saturday rule.
Investment banking teams have been in high demand after a boom in merger and acquisition (M&A) activity, which broke records for the second straight quarter in the three months to June, according to Refinitiv data.
Goldman Sachs, which continues to generate the highest investment banking fees among its peers, reported profits of $5.5bn in the second quarter after the surge in M&A deals. That was the second highest profit on record for the bank, only surpassed by its first quarter of 2021.
Goldman Sachs declined to comment.