Morgan Stanley said it will start paying six-figure base salaries to its entry-level bankers as a rush of post-pandemic deals and short staffing have spurred crushing workloads.
The Wall Street behemoth announced the $15,000 raise on Wednesday: First year analysts in investment banking and capital markets will now make a base salary of $100,000 and second-year analysts will now make $105,000, up from $85,000 and $90,000, respectively.
Morgan Stanley, headed by CEO James Gorman, follows on the heels of competitors JPMorgan and Citi — both of which announced in recent weeks that first-year investment bankers would haul in $100,000.
People close to Morgan Stanley say the pay hike is a nod to the fierce battle for bankers that has ramped up as dealmaking surges. July is typically when Morgan Stanley reevaluates and announces any changes in pay. The new salaries will go into effect on Aug. 1.
Morgan Stanley declined to comment.
Goldman Sachs is now the only top-tier firm that has yet to announce a pay hike for junior staff — and debate over the matter is roiling senior executives internally. People close to the bank note Goldman is keeping an eye on the competition and will announce any salary changes at the beginning of August.
In March, a leaked slideshow presentation compiled by 13 junior Goldman Sachs analysts detailed complaints about 100-hour workweeks. Some griped of shifts as long as 20 hours that left them little time to eat, sleep or shower, claiming that the grind damaging their physical and mental health.
Elsewhere, Citibank CEO Jane Fraser told employees she was banning Zoom meetings on Fridays to address Zoom fatigue. Investment bank Jefferies even offered its junior staff the primo Peloton bike as a “thank you” for working long hours.