Wells Fargo has raised junior dealmaker pay for the second time in a year, joining Wall Street rivals with starting salaries of $110,000.
Sources within the company say the US investment bank has increased salaries for analysts within the unit again, after initially raising pay in August last year.
Starting salaries for its investment banking unit are now $110,000, rising to $125,000 for second-year analysts and $135,000 for third-year analysts.
The changes will take effect on Friday, July 1, and some associates in Wells Fargo’s markets and commercial real estate arms have also been given raises.
Wells Fargo’s analyst pay increase will be implemented globally, with salaries in locations other than the United States matching Wall Street increases.
They are applicable throughout its corporate and investment bank, including advisory, capital markets, and sales and trading. According to a source familiar with the situation, the figures may differ slightly between divisions.
Wells Fargo follows JPMorgan, Morgan Stanley, Bank of America and UBS among others by rolling out a second pay rise for junior bankers.
Banks have been trying desperately to respond to a burnout crisis among analysts and associates, who have been quitting in greater numbers despite a surge in work over the last year as deal activity has reached new highs.
At this point in 2021, most large investment banks in the United States were offering starting salaries of $85,000, implying that pay had increased by nearly 30% in the previous year.
“We can confirm base pay raises for certain junior positions across the corporate and investment bank,” a Wells Fargo spokesperson said. “We believe in attracting and retaining top talent, and providing competitive compensation at all levels.”
In March of last year, a leaked presentation by 13 US-based Goldman Sachs analysts detailed 100-hour weeks and spiraling physical and mental health issues as an unprecedented deal boom weighed on juniors.
While banks have strengthened working restrictions such as so-called protected weekends and connection-free holidays, most have responded to a junior employee exodus by increasing pay.