BofA, Goldman Plan 20% Junior Banker Pay Boost

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Aug. 21 (Bloomberg) -- A new generation of Wall Street bankers is about to get a raise, as firms open wallets to head off defections to investment funds and Silicon Valley. Bloomberg Contributing Editor Bill Cohan and Bloomberg’s Alex Sherman speak on “Market Makers.” (Source: Bloomberg)

Bill cohan is a former wall street slave and longtime wall street watcher.

These kids are working a time when they are young and not getting paid the kind of money that a lot of people had thought they were.

But -- the word only can make people crazy.

A lot of people are not making anywhere near $55,000 per year.

Now we are talking somewhere around $80,000. let's keep this in perspective.

These young men and women work very hard.

The fact is that there is a supply and demand equation that is out of whack -- [laughter] -- [no audio] it looks like we're losing the feed.

Your point is taken.

But it should be noted that making $55,000 per year or $80,000 per year here in new york city is different than in my hometown.

It is not a huge mountain of cash, especially if you are not only working 80 hours per week, but you are expected to go in on saturday and sunday as well.

Forget about just paying the rent.

You have to figure out how you spend time with your family.

Absolutely.

Banks are trying to work on it from both sides of the coin.

They do want to attract the best talent.

Absolutely right.

They are trying to adjust to lifestyle issues.

They are trying to tell them they don't have to work on the weekends.

And expenses here are very high.

It is a gateway drug.

Then you can make a lot of money.

Who is the biggest competitor to the wall street guys?

Is that firms and hedge funds or silicon valley of the entrepreneurship spirit we have been seeing?

It is all of that.

This is a repeat of what happened in the first dotcom bubble in 1997. private equity firms, hedge funds, the allure of silicon valley and entrepreneurship is very great, especially when you see fortunes made in silicon valley.

The lifestyle of being an analyst at a wall street firm.

These firms become appealing at this particular moment, when there are a lot of deals, the stock options are high, people are feeling somewhat buoyant about the financial market.

We throw these numbers like 55,000 dollars to $80,000. that is your base salary.

If you added bonus to that, you are making $130,000 at the top investment bank, that is a really good salary right out of college.

Even private equity firms might have trouble matching that.

It is an credibly good.

Who is to say?

Do they keep the talent and they do have to go in on sunday?

Thanks for joining us, bill.

Author of many brilliant books.

Always appreciate your time.

Coming up, the sports rankings that only a banker could love.

It is about the most valuable

This text has been automatically generated. It may not be 100% accurate.

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