Close on the heels of Goldman Sachs giving 30 per cent raise to its junior bankers, Jefferies Financial Group has gone ahead and matched this scale, which is the highest in Wall Street. Evercore has also followed suit.
Junior analysts across banks in the US will now earn $110,000, as against the $85,000 they used to earn earlier. Second-year analysts will earn $125,000 instead of $90,000. Those in the third year, that is, associates, will earn $150,000 instead of $125,000. The bonuses that will be doled out are also expected to be very attractive this time.
There is a huge talent war in the banking and financial space. Earlier, in March this year, Jefferies had offered its junior employees free Peloton exercise bikes or Apple watches, or MIRROR home workout subscriptions, to help them de-stress amidst the demanding work-from-home situation.
Banks across the US have woken up to the deteriorating mental and physical health of their junior bankers after Goldman Sachs’ employees revealed how 100-hour work weeks were taking a toll on them.
With a surge in mergers and acquisitions in late 2020 and most banks being understaffed, the workload for junior bankers has increased tremendously. Many have been quitting, giving priority to their health over high salaries. Ever since, banks have been trying to retain their valuable talent and also attract quality talent.
