It started with Morgan Stanley. Then Goldman Sachs got on board. Soon, nearly every U.S. bank had made the same pledge to junior bankers: we’re going to pay you more for all those 100-hour weeks you’ve been putting in. Everybody wins! Oh, except those young U.S. bankers working at foreign firms.
Sources told the Wall Street Journal that Deutsche Bank and Credit Suisse are monitoring the situation, but are still noncommittal about increasing salaries for analysts and associates. While noncommittal is better than “no,” it’s not quite as good as “here’s a bunch more money.”
U.S. banks like Goldman, Morgan Stanley, Bank of America, Citi and J.P. Morgan are reportedly increasing base pay for junior staffers by between 20% and 25%.
Always one to preach about competitive compensation, Barclays will reportedly follow suit and pay its U.S. juniors the new market value. But it’s unclear whether the U.K. bank will extend that courtesy to EU bankers, according to the report.
A UBS source told the paper that the Swiss bank is content with its pay model and will likely keep salaries and bonuses at current levels. In fairness, UBS did just tweak its pay model for young bankers a year ago to stay competitive.
It will be interesting to see what foreign banks do in the coming weeks and months when it comes to pay. EU banks are hamstrung when it comes to paying large bonuses, but that wouldn’t prohibit them from upping base pay at the junior level.
But at the same time, banker pay is a much more volatile subject over in Europe than it is here in the States. The wrath of angry shareholders can leave quite an impression.
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M&A Match (BBW)
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Buzz Around the Office
What’s In a Name? (Newser)
A Virginia man named Paul Stoner was arrested for, you guessed it, marijuana. Not surprisingly, his mug shot looks exactly like a man named Paul Stoner who got arrested for growing pot.
Quote of the Day: “You’ve had a lawyer at the helm for the last four-and-a-half years to clear up legal issues, is he the right person to lead the bank for the next five years? It’s not quite clear he understands the strategy or operations as well as someone would need to.” – wave-making analyst Mike Mayo on Bank of America CEO Brian Moynih