Morgan Stanley is boosting — to $110,000 — the salaries of first-year analysts working in the research, sales and trading, investment banking and capital markets segments of the firm’s institutional securities division, the bank told employees Tuesday, according to Business Insider.
When the raises take effect in January, Morgan Stanley would tie Goldman Sachs by offering the heftiest entry-level pay among the country’s major banks.
Tuesday's move also marks the second time in a month that Morgan Stanley lifted salaries for first-year investment banking and global capital markets analysts. As recently as July, first-year bankers at Morgan Stanley were earning $85,000 a year. That changed Aug. 1, when the firm bumped compensation to $100,000.
Morgan Stanley is also boosting pay for second-year analysts in the research, sales and trading, investment banking and capital markets divisions to $125,000, Business Insider reported Tuesday. Pay for second-year investment banking and global capital markets analysts jumped from $90,000 to $105,000 earlier in August.
Goldman Sachs found itself at the center of the junior banker pay narrative in March, when a self-survey by a group of 13 junior analysts — detailing "inhumane" 100-hour workweeks, deteriorating physical and mental health and a souring outlook for the future — went viral.
Since then, a number of banks — JPMorgan Chase, Citi, Barclays and Deutsche Bank among them — have raised entry-level investment banker pay to the $100,000 threshold. Bank of America kick-started the current spate of salary one-upmanship in April, when it gave $10,000 raises to analysts and an extra $20,000 to associates and vice presidents. It followed that up in August with a second raise that brought first-year pay from $95,000 to $100,000. Wells Fargo, also in August, pushed base salaries for first-, second- and third-year analysts up by $15,000 — to $100,000, $105,000 and $110,000 respectively, Business Insider reported.