Goldman Sachs 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. So much for the firm's “no mercenaries” approach.
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 worldwide.
Analysts and first-year associates perform much of the grunt work that allows banks to pump out deals and take advantage of busy trading periods – 2020 being one of the industry's busiest deal flow periods ever. Their titles are a function of how long they have been at the bank. Responsibilities vary based on their division—investment banking, capital markets, asset management, among others. Investment banking analysts, for example, might be asked to create slide decks detailing the financial impact of mergers and acquisitions.