Goldman opens its wallet to junior bankers, rivals likely to follow suit
The writing has been on the wall for a while now. Banks must treat their junior staffers with more love in order to stay competitive with Silicon Valley and other employers of top talent. First came the work-life balance rules – which seem to be more effective than we first thought – and now an even more important change: pay raises.
Goldman Sachs will increase 2015 salaries for junior bankers by more than 20%, according to the New York Post. First-year analysts will take home roughly $85,000 in salary, on top of any year-end bonus that they earn. A source told the paper that bonus payments would not increase next year. But based on historical averages, the median total compensation for junior bankers at Goldman may rise to as much as $140k. Not bad for a recent college grad.
The move comes just a few weeks after news broke that rival Morgan Stanley would increase base salaries for its associates and VPs by as much as 25%. At Goldman, the raises will affect all divisions, according to Bloomberg. Only junior workers within Morgan Stanley’s global markets and investment-banking divisions will see the financial windfall, says the Wall Street Journal.
Likely, pay increases for young bankers won’t be particular to just Morgan Stanley and Goldman Sachs. Rumors began circulating last week that J.P. Morgan, Citi and Bank of America are all eyeing similar initiatives. Like with the work-life balance rules, all U.S. banks will surely follow suit when it comes to compensation.
Wall Street or Silicon Valley? The decision likely just got a bit tougher for blue-chip graduates.
UPDATE: Indeed every bank is following suit!
Investment Banking Interview Questions, With Answers (eFinancialCareers)
Here is a collection of real questions that were asked of investment banking candidates at the MBA level, along with suggested answers that they put together. If you find yourself on a ‘superday’ interview at a big bank, you can bet that you’ll be asked at least of few of these questions.
‘If I Stayed One More Year, I’d Never Leave’ (eFinancialCareers)
Want to leave your investment banking job to launch a startup? Likely you’ll need to quit before your idea even begins to take shape.
The Life and Times of a Whistleblower (NY Times)
The SEC’s whistleblower program has paid out $16 million in awards to those willing to rat out their employers for immoral behavior. The money is well and good, but be prepared to be an outcast. And have your resume ready.
Heads May Role at Standard Chartered (Bloomberg)
Standard Chartered was just fined $300 million for failing to correct poor anti-money laundering controls that previously led to a 2012 fine. Now, the bank is undergoing a review that could result in firings within the firm’s compliance department.
Sales Shakeup at Goldman (Bloomberg)
John Shaffer, Goldman Sachs’ co-head of New York credit sales, is leaving the company at the end of the year. The decision prompted a series of other moves, including naming Avanish Bhavsar as the new co-head of credit sales for the U.S., along with Jon Meltzer.
Pimco traders have had a difficult last 18 months fighting the sluggish bond market. Now they’re dealing with a bed bug infestation in New York, at least according to Fox Business reporter Charlie Gasparino.
Summers Aren’t For Lounging (Quartz)
Employers are more interested in a college student’s internship experience and work history than their GPA, coursework relevance and the reputation of their college. Tell your kid to get an internship!
Buzz Around the Office
One side effect of the Uber revolution: people keep trying to climb into random vehicles believing they are Uber cars. Often they are not.
Quote of the Day: “Love what you do. Get good at it. Competence is a rare commodity in this day and age. And let the chips fall where they may.” – Jon Stewart
