Summary List Placement
Across Wall Street, financial firms are competing with one another to retain junior bankers, providing perks and incentives for young talent to remain on the hook.
The push among investment banks and private-equity firms to incentivize bankers to stay comes after a grueling year of working from home that includes high deal volume. Recently, the industry’s youngest talent has made its feelings known.
Whether it’s leaked pitch decks from junior employees laying out their dissatisfaction with their working conditions, or widespread associate departures at some firms like Apollo Global Management, pressures are mounting for execs to respond to their grievances.
We’re keeping tabs on how firms across the worlds of private-equity and banking are responding by rolling out special perks, bonuses, and raises across junior ranks.
CEO David Solomon promised to protect junior bankers’ Saturdays off after a survey detailing “inhumane” conditions went viral. The February survey was developed and conducted by 13 first-year analysts at Goldman Sachs about hours logged and working conditions.
The findings included estimates for this year on the number of hours worked in a week (98), hours slept each night (five), and time they get to sleep (3 a.m.). All respondents said their work hours negatively affected relationships with friends and family, and 77% said they felt like they’d been a victim of workplace abuse.
Insider previously reported on a leaked pitch deck showing analysts were pleading for changes since work from home started.
Bank of America
Bank of America 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. That source 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.
Warburg Pincus is bumping pay by up to 30% for analysts and associates at the private-equity firm, Insider reported. The move will increase total compensation for investing-focused junior workers, meaning base plus bonus.
Employees learned of the increases on an internal call last week, according to a source directly familiar with the situation. Warburg explained the raises as a move to bring comp in line with market rates, the …read more
Source:: Business Insider