UK Credit

Credit Suisse raises junior pay again to $110,000 as salaries soar

Credit Suisse has raised the pay of junior bankers for the second time, matching its Wall Street peers and Swiss rival UBS as banks continue to compete for talent.

The Swiss bank will pay its first-year analysts on Wall Street $110,000 starting July 1, according to people familiar with the matter, while second-years will receive $125,000. The new increase will be applied globally, with other locations seeing an equivalent increase. Credit Suisse runs a two-year program for its analysts, having accelerated its training program in December last year.

At the end of August, Credit Suisse raised the entry salary from $85,000 to $100,000 – the latest major investment bank to make the move – in a bid to retain analysts amid a fierce battle for talent and an increase in burnout in the junior ranks. The Swiss bank had previously introduced a one-time $20,000 lifestyle bonus in March last year.

However, since then most investment banks have raised salaries for the second time, either globally or just in the US to keep pace with their rivals. As a result, $110,000 – around £70,000 in the city – is increasingly becoming the norm, a 30% increase on the previous year.

LILY UBS hikes pay Wall Street analysts $110,000

Citigroup, JPMorgan, Morgan Stanley and UBS all announced a second round of pay increases for juniors earlier this year. Wells Fargo has just unveiled a new salary increase for analysts around the world, across all of its major lines of business within its corporate and investment banking.

Last year, a deal boom that brought in a record $130 billion in industry-wide fees escalated the junior workweek to around 100 hours, pushing already demanding work to new extremes. . Juniors were quitting in record numbers, and banks responded to the crisis by tightening existing policies restricting work on weekends and holidays, as well as raising wages.

LILY JPMorgan raises junior salaries again as bank salaries soar

Banks began raising wages following a leaked presentation by a group of Goldman Sachs analysts in March last year that described spiraling working hours that were taking a toll on mental and physical health.

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