Junior bankers at Goldman Sachs Group Inc. are getting a big raise.
The Wall Street firm is increasing base pay for its entry-level employees—first-year analysts—to $110,000, a nearly 30% increase from the previous starting salary of $85,000, according to a person familiar with the matter. Second-year analysts are set to make $125,000, up from $95,000. Salaries for first-year associates will jump to $150,000 from $125,000.
The bank plans to inform rookie bankers of the increases to base salaries, along with their annual bonus amounts, later this week, the person said. The changes cover just over 1,000 employees world-wide.
It has been a tough year for Wall Street’s youngest workers. Many of the most junior employees at investment banks worked for months without meeting their colleagues in person, and their first year on the job was one of the busiest on record for deal making.
In a small, self-conducted survey earlier this year, Goldman’s first-year analysts reported that they were working an average of 95 hours a week and said job stress had harmed their physical and mental health. Goldman, in response, said it would hire additional bankers and more strictly enforce boundaries around working hours.