- Bank of America is raising junior and mid-level salaries for staffers in its US investment bank.
- Analysts will receive raises of $10,000, and associates and vice presidents will receive $25,000 bumps.
- Other financial firms have taken similar measures of late, including Credit Suisse and Warburg Pincus.
- See more stories on Insider’s business page.
Bank of America is the latest Wall Street firm to hike salaries for young workers.
The firm will raise salaries for associates and vice presidents in its US investment-banking division by $25,000, and analysts by $10,000, two sources familiar with the new measures told Insider. Non-US based bankers will see a similar bump, one source added.
One source familiar with the company’s plans said that the thinking behind the salary bumps is that it fits in broadly with the bank’s focus for the past decade on alleviating some of the work-related difficulties that inherently come with junior talents’ jobs, like taking measures to reduce pitch documents, for instance.
Meanwhile, financial firms are also taking measures to increase salaries and in some cases bonuses for their employees too, as the issue of widespread burnout among the industry’s junior talent comes to light.
Two recently-leaked pitch decks created by exhausted analysts in the investment bank at Goldman Sachs over the past year originally brought the issue to light in March, sparking a flurry of moves on the part of industry execs to boost comp and offer perks to younger staffers.
So far, Goldman Sachs, unlike a series of other firms, has yet to extend any known perks, raises, or other special benefits to staffers in the wake of the fallout.
Previously, Insider reported that Swiss bank Credit Suisse offered junior- to mid-level talent in its capital markets and advisory group $20,000 bonuses as well as pay raises in late March.
Insider reported on Thursday that private-equity firm Warburg Pincus is increasing base compensation and bonuses of junior investment-focused talent by some 30%. Fellow PE firm Apollo Global Management offered some current associates tiered retention bonuses of up to $200,000 if they would agree to stick with the firm through September 2022, Insider reported in March.
Bloomberg first reported the news of the raises at Bank of America on Thursday.
The publication cited a company memo from the executive committee of Bank of America’s global corporate and investment-banking division.
The memo recognized junior talents’ “contributions and commitment,” which it said “have become more important than ever to the continuous success of our deal teams and client relationships,” according to Bloomberg.
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