Goldman Sachs raises salaries for junior bankers

This is a victory for the employees of Goldman Sachs. After denouncing inhuman working conditions in March, the junior bankers of the American firm obtained a salary increase, according to information from the Business Insider news site.

Analysts working for less than a year at the American bank will now earn $ 110,000 a year in fixed salary, against an average of $ 86,000 previously. This salary will increase to $ 125,000 in their second year. Associates, the next rank, will earn $ 150,000 in their first year, according to Business Insider, citing two sources familiar with the matter.

Alignment with the competition

No official announcement has been made and it is not known whether this salary increase also affects other employees of the investment bank, Business Insider said. Contacted, Goldman Sachs declined to comment on this information.

The American investment bank followed the example of its competitors, who had raised the salaries of their juniors in order to compensate for an unprecedented level of activity in mergers and acquisitions.

Citigroup, Morgan Stanley, UBS and Deutsche Bank had thus increased the salaries of their first-year analysts, now paid around $ 100,000 per year, an increase of $ 15,000. With this increase, Goldman Sachs is among the most attractive banks for young bankers.

An “excessive” workload

In February, a group of junior bankers at Goldman Sachs complained to management about their working conditions, saying they work 100 hours a week and sleep 5 hours a night in order to cope with excessive workload and ” unrealistic deadlines ”.

Half of the group, made up of thirteen first-year employees, had threatened to leave the bank by the summer if their working conditions did not improve. Under pressure, the bank had started to consider a potential salary increase in July, but several members of the management were reluctant to increase the juniors.

Goldman Sachs Managing Director and Hourly DJ David Solomon said the bank was working to recruit more associates to cope with the workload and promised to enforce the “Saturday rule.” which prohibits employees from working between 9 p.m. on Friday evening and 9 a.m. on Sunday, except in certain circumstances.

Incentive for vaccination

The pressure exerted on bank employees is not, however, only linked to the pace of work. While the health situation has improved somewhat, Goldman Sachs now requires them to provide their vaccination status, under penalty of being denied access to the premises. Unvaccinated employees must undergo an antigen test on site, before entering the offices.

The company is known to be very attached to face-to-face work. In an interview, David Solomon even called teleworking “an aberration”. The investment bank, which is convinced that the office remains “the center of gravity of work”, has also made every effort to bring back its employees.

Here again, Goldman Sachs is not an isolated case. Morgan Stanley is already banning staff and unvaccinated customers from entering its New York headquarters. All employees who work in buildings with a “high concentration of people” were required to state their immunization status by July 1, according to an internal memo.

Citibank employees who are vaccinated can submit proof of their vaccination to Human Resources. Unvaccinated employees are required to get tested three times a week with a rapid home test.

Source: Reuters

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