Morgan Stanley is boosting annual base pay by $15,000 for first- and second-year analysts in the bank’s investment-banking and global capital markets divisions, it announced Wednesday, according to Business Insider.
The increases, effective Aug. 1, bump compensation to $100,000 for first-year bankers and $105,000 for second-years from $85,000 and $90,000, respectively, the publication reported.
Bank of America said in April it would boost the base pay of their own junior bankers by $10,000 a year, while increases for associates and vice presidents would be closer to $25,000. Wells Fargo opted to bump compensation through bonuses rather than base pay — $10,000 spread out over six months for analysts, and $20,000 for associates.
That leaves Goldman Sachs among the last holdouts to keep its base pay below the $100,000 threshold — although the bank’s fiscal year ends Saturday, and compensation tweaks typically follow shortly thereafter.
Goldman CEO David Solomon told analysts this month, on the bank's second-quarter earnings call, to "expect to see us pay appropriately during our normal cycle.”
The bank found itself at the center of the junior banker pay narrative in March, when a self-survey by a group of 13 Goldman junior analysts — detailing "inhumane" 100-hour workweeks, deteriorating physical and mental health and a souring outlook for the future — went viral.
Morgan Stanley’s base pay increases stemmed from a review of annual compensation to adjust for market conditions as part of the bank's normal course of business, Business Insider reported Wednesday, citing an anonymous source.