Goldman Sachs, which cut the portion of revenue set aside for pay the past two years, will increase 2015 salaries for junior employees in the U.S. by about 20%, according to a person briefed on the decision.
Bloomberg News reports the raises will apply to employees in all divisions with the title of analyst, typically recent college graduates, said the person, who asked not to be identified speaking on personnel matters. The increase won’t affect bonuses, which are based on the firm’s and employees’ performance.
Goldman and other Wall Street firms have been cutting hours and attempting to improve working conditions for junior bankers as the companies seek to prevent defections to competitors such as private-equity funds. Investment banks including Credit Suisse and Bank of America have encouraged analysts to take time off on weekends.
Morgan Stanley is raising salaries for associates and vice presidents in its investment-banking and underwriting units worldwide by about 25%, a person briefed on the matter said last month.
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