JPMorgan Chase & Co., Citigroup Inc., Morgan Stanley, UBS Group AG, and Deutsche Bank AG were the first to raise salaries for junior bankers—but now that Goldman Sachs has caught up and made the same move, its starting salaries are the highest of the group, the Wall Street Journal reports. Goldman Sachs will formally announce the nearly 30% pay raise this week, a source tells the paper. The new amounts: First-year analysts will make a base salary of $110,000; second-year analysts will make $125,000; first-year associates will make $150,000. They also receive annual bonuses. At most of the aforementioned other banks, first-year analysts now make $100,000, Yahoo Finance reports.
As the BBC reports, the pay increase for junior bankers comes after some of them complained about "inhumane" working conditions this year, describing 95-hour work weeks, poor treatment by managers, sleep deprivation, and job stress so intense their physical and mental health were suffering. Goldman Sachs saw a sharp increase in its second-quarter revenue. Its stock has surged nearly 45% since January, Fox Business reports. The site suggests Goldman Sachs could have another reason for bumping pay so much: Unlike many other companies, it wants its employees back in the office despite COVID-19 concerns. (Read more Goldman Sachs stories.)