Only about 10 years ago, 1st year investment banking analysts used to make a $55k base salary out of college. That is no longer the case, as growing inflation and low morale on Wall Street has forced banks to increase wages. Earlier this week, JPMorgan became the first large US bank to raise 1st year analyst salaries to six figures out of college: $100k from $85k.
The "SOS" movement began earlier this year when 13 anonymous Goldman Sachs analysts put out a presentation detailing the dreadful reality of their lives – 100-hour work weeks, with declining mental and physical health: “My body physically hurts all the time and mentally, I’m in a really dark place.”
The leaked Goldman presentation got a reaction out of Wall Street and many banks acted fast to avoid a similar PR disaster. Banks such as Credit Suisse, gave out one-time bonuses, Guggenheim Securities raised base salaries and some (Jefferies) got clever with Peloton bikes. The movement spread to other industries as well - overworked associates at law firms got raises/bonuses and large private equity firms like Apollo gave its associates $200k to stay on.
After JPMorgan's announcement this week, Barclays was the other big bank to follow suit and announced $15k raises for analysts and $25k for associates. Baird, a Milwaukee based bank got in on the action and raised 1st year salaries to $110k and 2nd years' to $115k. (the awkward moment when Milwaukee analysts make more than NYC analysts)
Short Squeez Takeaway: In probably the saddest turn of events, the analysts at Goldman that started the movement still have not received any raises or bonuses (although analysts did receive food baskets to make up for 100 hour weeks lmao). Other large banks such as Morgan Stanley, Citi and Credit Suisse also have not announced any raises. We think these banks will be forced to raise salaries sooner rather than later, otherwise they are going to lose talent faster than it takes for you to get your Seamless delivery from the lobby.