Citigroup is raising the salaries of its junior investment bankers, the latest on Wall Street to try to improve the treatment of young employees, after a group of Goldman Sachs bankers publicly complained about the harsh working conditions in the industry.
Citigroup stated in a memo to employees on Friday that it will increase the basic salaries of project vice presidents, assistants and analysts in the bank’s capital markets and consulting departments from July 1.
“The BCMA project vice president, assistants and analysts are a very valuable resource and have contributed immensely to the continued success and strength of BCMA,” BCMA co-leaders Tyler Dickson and Manolo Falcó wrote in the memo. Has been reviewed by the Financial Times. “Especially in the current environment, it is important that we recognize your talents and efforts in order to promote the success of our business and serve our customers.”
Citi’s BCMA division has approximately 6,000 employees worldwide.
According to people familiar with the matter, the salary increase ranges from $15,000 to $25,000, which will increase the annual salary of US analysts to $100,000 in the first year. This does not include bonuses.
According to large investment banks, including Citi, the average salary for analysts in the first year is $91,000. Wall Street Oasis, Tracking the financial industry.
According to people familiar with the matter, rivals JPMorgan Chase and Barclays Bank also recently increased their first-year analyst salary from $85,000 to $100,000.
For a long time, investment banking has been known for its harsh working hours and tight workplace culture, but during the pandemic, the demand for work has only increased.
Earlier this year, a group of first-year investment banking analysts at Goldman Sachs publicly opposed the pressure of the job.Based on a Survey of 13 analystsThe slide shows that the average working time per week is 95 hours and the sleep time per night is 5 hours.
Some banks have taken measures to provide additional allowances to compensate for the increased pressure on young bankers this year.
Earlier this year, Jefferies provided benefits to young employees, including Peloton bicycles and Apple products, while Credit Suisse offered bankers a $20,000 bonus. Bloomberg with NBC Finance Channel.
Citigroup has so far taken more Flexible method Compared with companies such as Goldman Sachs and Morgan Stanley, it allows bankers to return to office work.
The bank said that most of its bankers will return to work in a “hybrid” mode, at the office at least three days a week and at home at most two days a week.