Pay consultants and Wall Street head hunters say banks that haven’t yet announced major pay raises may be forced to fall in line with the $110,000 new normal in order to remain competitive. Firms such as Morgan Stanley, Barclays Plc, Citigroup Inc. and Deutsche Bank AG, which raised their first-year banker pay to $100,000 earlier this summer, may need to make up for the discrepancy in other ways.
“They’ll pay them a little bit more on the bonus,” Kennedy said. But banks will keep pay “as is for now and then probably match it next year.”
Evercore Inc.’s first-year analysts will also receive compensation of $110,000 starting in the summer of 2022, according to offer letters sent to future bankers starting work next summer, Business Insider reported. A spokesman for Evercore declined to comment.
—With assistance from Hannah Levitt.
This article was provided by Bloomberg News.