Goldman Sachs Tops Other Banks in Analyst Pay: Chart of the Day
The base salaries of analysts at three major U.S. investment banks have declined since 2009, while increasing 15 percent at Goldman Sachs Group Inc.
The CHART OF THE DAY shows that from 2009 to 2012, the base pay of analysts at Goldman Sachs increased to $76,250 on average from $66,000 according to data provided by Glassdoor, a San Francisco-based career website. The combined average pay at Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co. over the same period fell to $58,226 from $62,105. The data, which exclude bonuses and other forms of compensation, were gathered from verified surveys of analysts with one to three years of experience at each firm.
Lower salaries are “consistent with what we’re hearing, so it suggests to me that until there’s a turnaround in the banking sector, until the next period of real growth, we may see more of the same,” said John Challenger, chief executive officer of Chicago-based Challenger Gray & Christmas Inc., an employment consulting firm. “Goldman has continued to go out and pay for and be the place that the very top talent wants to go. It’s a conscious choice that they’ve made to not lose that position.”
Goldman Sachs, JPMorgan Chase, Bank of America and Citigroup declined to comment on the Glassdoor survey. Morgan Stanley is planning to eliminate 1,600 jobs in the coming weeks according to a person with direct knowledge of the matter. This accounts for 6 percent of the company’s investment banking division. The nine largest investment banks announced more than 30,000 job cuts in the first nine months of 2012 according to data compiled by Bloomberg.
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