With envy-inducing fixed pay, bonuses and perks, salaries on Wall Street typically trump any other major financial center.
But even investment bankers have been feeling the pinch in 2024. The boom of 2022 seems unlikely to be repeated and many employees are seeing their take-home pay stagnating, or even dropping.
Understandably, this is leading to grumblings of dissatisfaction, but what’s the alternative? With most organizations in the same boat, the grass isn’t much greener on the other side. As a result, hiring activity is also low as banks don’t have the packages to entice talent away from their current jobs.
But, could this be about to change? And where are the next opportunities for the cream of banking talent? In our review of the state of salaries in the US banking sector in H1 2024, we find where the most interesting moves might be, and how to manage expectations in both the near and longer terms.
How do salaries compare at different investment banks?
Selby Jennings published new research in the first half of the year revealing the compensation levels across different investment banks. It found there was a drop in the number of investment bankers receiving bonuses – 77%, down eight percentage points on 2023 – and only two-fifths saw their bonuses increase.
Slow deal activity and a pause on hiring activity is said to be to blame for the sluggish bonus season. Given that three-quarters of respondents said that a low bonus, or lack of one entirely, would spur them to leave a company, institutions may find themselves forced to start hiring again as valuable but dissatisfied staff leave for greener pastures.
According to Selby Jennings’ Global Client Director, Jesse Skaff, the only reason this hasn’t happened yet is that those greener pastures have yet to emerge: “People are not going to leave one place that paid a low bonus to join somewhere paying similarly.” As soon as there’s a better offer on the table, 85% of respondents admitted they would leave.
Download the report for a full breakdown of the bonuses and salaries for 2024.
| Job | Middle Market Investment Banks ($) | Elite Boutique Investment Banks ($) | Bulge Bracket Investment Banks ($) | Boutique Investment Banks ($) |
|---|---|---|---|---|
| Investment Banking Analyst | 100k – 135k (20-50%) | 110k – 150k (30-75%) | 100k – 135k (20-50%) | 80k – 110k (30-50%) |
| Investment Banking Associate | 150k 225k (30-80%) | 175k – 250k (50-100%) | 175k – 225k (20-75%) | 120k – 180k (30-80%) |
| Investment Banking Vice President | 225k 275k (30-125%) | 275k – 300k (50-150%) | 250k – 300k (40-125%) | 150k – 200k (40-150%) |
| Investment Banking Director | 275k – 300k (Performance & Origination 70-200%) | 300k – 350k (Performance & Origination 100-200%) | 300k – 350k (Performance & Origination 75-150%) | 200k – 250k (Performance & Origination 50-200%) |
| Investment Banking Managing Director | 250k – 400k (20-30% of Revenue Generation) | 300k – 450k (20-30%+ of Revenue Generation) | 300k – 450k+ (20-30%+ of Revenue Generation) | 150k – 250k+ (30-50%+ of Revenue Generation) |
| Corporate Development & Strategy | Base Salary | Bonus (%) |
|---|---|---|
| Corporate Development Analyst | $100k – $115k | 10 – 35% |
| Corporate Development Associate | $115k – $130k | 15 – 40% |
| Corporate Development Manager | $130k – $160k | 20 – 45% |
| Corporate Development Senior Manager | $160k – $190k | 25 – 50% |
| Corporate Development Director | $190k – $230k | 30 – 60% |
| Corporate Development Vice President | $200k – $250k | 30 – 60% |
| Head of Corporate Development | $250k – $350k+ | 50 – 80% |
Mixed news from HSBC and Morgan Stanley
Back in February, HSBC was reportedly increasing salaries for its New York staff by around 10%. This meant first-year analysts would start on £110k, bringing the firm on par with the likes of Goldman Sachs and JPMorgan.
Meanwhile, it was reported in January that Morgan Stanley would reduce bonuses for IB employees by between 10% and 15%.
Securing talent young
Aspiring bankers don’t need to wait until they’ve graduated from college before they can start earning big money. Interns at investment banks are also being offered eye-catching monthly salaries and other benefits.
According to efinancial careers, top targets are Quantitative Researchers and Software Engineers, with monthly pay ranging from $13,000+ (Goldman Sachs, Quantitative Researcher) to nearly $8,000 (Bank of America, Software Engineer). Undergraduates are therefore earning on a par with IB Analysts at elite boutique investment banks.
Housing or sign-on bonuses are additional monthly treats, ranging from $800 (Jersey City) to $3,500 (New York).
New York still top for Goldman salaries
In May, Goldman Sachs published the salary brackets for analysts and associates across its US locations, revealing that its New York office offers the highest compensation. West Coast-based analysts could potentially be earning $15k less than those based in New York.
The data also shows that alongside salespeople and traders, wealth and asset managers are also well compensated. Salaries range from $80k as an analyst to $175k as associates, with bonuses padding those figures out handsomely.
Goldman Sachs salaries for juniors, 2024, front-office
| New York & Jersey City | |||||
|---|---|---|---|---|---|
| Summer Analyst | Summer Associate | Other interns | New Analyst | New Associate | |
| Investment Banking | $65k-$85k | $125k-$175k | $75k-$85k | $80k-$110k | $130k-$175k |
| FICC and Equities | $65k-$85k | $125k-$175k | $75k-$85k | $80k-$110k | $130k-$175k |
| Asset Management | $65k-$85k | $125k-$175k | $75k-$85k | $80k-$110k | $130k-$175k |
| Wealth Management | $65k-$85k | $125k-$175k | $75k-$85k | $80k-$110k | $130k-$175k |
| Platform Solutions | $65k-$85k | $125k-$175k | $75k-$85k | $80k-$110k | $130k-$175k |
| Global Investment Research | $65k-$85k | $125k-$175k | $75k-$85k | $80k-$110k | $130k-$175k |
| Executive Office | $65k-$85k | $125k-$175k | $75k-$85k | $80k-$110k | $130k-$175k |
| California & Washington | |||||
|---|---|---|---|---|---|
| Summer Analyst | Summer Associate | Other interns | New Analyst | New Associate | |
| Investment Banking | $60k-$85k | $125k-$175k | $75k-$85k | $65k-$110k | $130k-$175k |
| FICC and Equities | $60k-$85k | $125k-$175k | $75k-$85k | $65k-$110k | $130k-$175k |
| Asset Management | $60k-$85k | $125k-$175k | $75k-$85k | $65k-$110k | $130k-$175k |
| Wealth Management | $60k-$85k | $125k-$175k | $75k-$85k | $65k-$110k | $130k-$175k |
| Platform Solutions | $60k-$85k | $125k-$175k | $75k-$85k | $65k-$110k | $130k-$175k |
| Global Investment Research | $60k-$85k | $125k-$175k | $75k-$85k | $65k-$110k | $130k-$175k |
| Executive Office | $60k-$85k | $125k-$175k | $75k-$85k | $65k-$110k | $130k-$175k |
Leaders’ pay still strong
At the top tier, some are enjoying continued good fortune. Bank of America revealed in March that its head of trading, Jim De Mare, saw his fixed salary rise 11% to $21 million, and head of banking, Matthew Koder’s salary rose 5% to $16.5 million.
CEO Brian Moynihan, however, saw his compensation drop to $29 million. Reports suggest this is simply because he’s happy in his job and sees no reason to leave, removing the need for the business to incentivise him financially to stay.
Elsewhere, however, Blackstone’s Steve Schwarzman lost nearly a third (29%) of his pay and dividends in 2023, compared to the previous year. Even still, this leaves him with nearly $900 million in compensation.
Salary growth at a record low in real estate
Looking at the global real estate investment sector, PERE data suggests salaries are at an 11-year ‘nadir’. Average median growth in total remuneration was less than 1%. Not unexpected, “but it was still brutal” stated Ghada Sousou of executive search firm, Sousou Partners.
However, Sousou also suggested that employees were more understanding of understated salary growth, recognizing the slow state of the markets overall and optimistic that this is the lowest it can go.
This may take a little time but by finding alternative ways to show employees they are valued, beyond fixed rate compensation, managers are said to be confident they can keep hold of talent long enough to ride out this rocky patch.
Family offices compete for talent
The growth in family offices is proving to be real competition for talent with private equity, hedge funds and banks. Compared to the established investment banks who have significantly slowed their hiring volumes and where wage growth can be as low as a single percentage point, 57% of family offices are reportedly planning to hire more staff in 2024, and overall pay is up 10-20% since 2019.
One Family Office was considering offering $300,000 annually for a junior analyst.
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