Goldman is rewarding its partners—roughly 400 executives—with a special one-time award, Bloomberg reported last week. That payout will be in addition to their typical cash and bonus compensation, which ranges from a few million dollars to multiples of that after a year of record earnings.
The bank will likely to boost its bonus pool for investment banking by about 50% while JPMorgan’s increases may extend to 40%, Bloomberg reported last month.
The banks are also increasing headcount in a bid to stave off competition from an explosion in fintech firms. Goldman hiked staffing levels by 8% during 2021 as it added technology professionals and made new business investments, it said.
Citigroup Inc. hired 5,500 people for its technology arm and increased technology spending by 10% from a year earlier to about $10 billion, it said on Friday. The bank also increased salaries for U.S. junior investment bankers. First-year analysts will see their base pay rise to $110,000 while second- and third-year analysts will get $125,000.
“There’s a lot of competitive pressure out there on wages and pay,” Citigroup CFO Mark Mason said.
—With assistance from Sridhar Natarajan and Hannah Levitt.
This article was provided by Bloomberg News.