Goldman Sachs is raising salaries for its junior employees in the investment bank division.
The bank's second-year analysts will now make $125,000 in base compensation, while first-year associates will earn $150,000.
The increase comes following complaints by younger bankers of long working hours - sometimes as much as 100 hours a week. They said the conditions were 'inhumane'.
A number of investment banks have raised their pay for first- and second-year associates this summer in an attempt to ease the strain on such workers and to compensate them more for their work supporting more senior staff in a year of unprecedented deal making.
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Goldman Sachs is raising salaries for its junior employees in the investment bank division. The bank's second-year analysts will now make $125,000 in base compensation, while first-year associates will earn $150,000
Goldman's Chief Executive Officer David Solomon has said the bank was working to hire more associates to help with the workload
It means the compensation at Goldman is greater than that of rivals Citi Group, Morgan Stanley, UBS Group and Deutsche Bank which have already increased pay for their first-year analysts to around $100,000, a raise of about $15,000, second-year to $105,000 and to $110,000 for third years over the past few weeks.
In February, a leaked presentation by a group of junior bankers in Goldman's investment bank told senior management they were working nearly 100 hours a week and sleeping 5 hours a night to keep up with an over-the-top workload and 'unrealistic deadlines.'
It resulted in declining physical and mental health with half of the group, which consisted of 13 first-year employees, saying they were likely to quit by summer unless conditions improved.
'The sleep deprivation, the treatment by senior bankers, the mental and physical stress… I've been through