Bank of America is boosting base salaries for junior bankers, joining firms including Perella Weinberg Partners and Evercore in lifting pay to lure young talent on Wall Street.
At Bank of America, first-year analysts across the global corporate and investment banking, markets, and research divisions will receive $100,000, up from $95,000, according to a person with knowledge of the matter. Second-year analysts will get base pay of $105,000, and third-year will receive $110,000, said the person, who asked not to be identified discussing information that isn’t public. The new salaries take effect in February.
Evercore is also boosting salaries for first-year investment-banking analysts, to $120,000, putting the firm at the top of the pay scale for junior talent on Wall Street. Guggenheim Partners raised its base salary a second time since May, to $110,000, while Perella is now paying its first-year bankers the same amount.
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The latest hikes underscore the intensity of the battle for talent breaking out amid a surge in deal flow that’s worn down young bankers enduring long hours working from home. In Evercore’s case, its salary puts it ahead of levels offered across Wall Street so far. Goldman Sachs and Jefferies Financial Group have increased pay to $110,000, with other major lenders offering around $100,000.
“In the face of increased market activity, your contributions and commitment have become more important than ever to the continuous success of our business,” the executive committee of Bank of America’s global banking and markets team wrote in a memo to employees Friday. “Fostering an environment where you can build a long-tenured career is of the utmost importance to us.”
At Evercore, second-year investment-banking analysts will get $130,000, and those in their third year will be paid $140,000, according to people familiar with the matter who asked not to be identified discussing private information.
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Guggenheim revised pay for first-year analysts by $10,000, topping an original $100,000 salary it committed to in May, according to a person familiar with the matter. The bank also increased second- and third-year analysts’ salaries to $120,000 and $130,000, respectively, the person said. At Perella, second-year bankers will receive $125,000 in base pay, and those in their third year will get $150,000, said a person with knowledge of the firm’s plans.
Representatives for Evercore, Guggenheim and Moelis declined to comment. A Bank of America spokesman confirmed the contents of the firm’s memo. A Perella representative didn’t immediately respond to a request for comment. Some of the Evercore and Guggenheim raises were previously reported by Insider.
Bank of America and Guggenheim are among the first among Wall Street banks to have upped their salaries for lower-level bankers a second time. Guggenheim increased first-year analysts’ salaries to $100,000 from $85,000 in May, setting the new six-figure standard that later sparked a pay-raise frenzy once JPMorgan Chase and Barclays followed suit in late June.
