Goldman Sachs is raising base comp for some junior investment bankers, Insider confirmed on Sunday night.
Second-year analysts will now make $125,000 in base comp before a bonus, two people familiar with the situation told Insider. First-year associates will now make $150,000, the two people said.
Junior bankers are said to have learned about the raises on Sunday by seeing new information posted in the firm's internal human-resources portal, according to the two sources. Both requested not to be identified discussing private information.
Insider verified the information by reviewing screenshots from the portal. No formal announcement or memo has been sent to employees, one of the sources said.
A spokesperson for Goldman Sachs declined to comment.
It was unclear which other levels in the investment bank had also been given salary bumps.
Wall Street has been raising comp for juniors
The investment-banking community has been watching Goldman Sachs closely as rivals like Morgan Stanley, JPMorgan Chase, and Citigroup raised base comp for junior bankers throughout the spring.
First-year associates at UBS, William Blair, and PJ Solomon have also recently gotten base-comp raises, Insider reported in July. Associates at those firms will receive a salary of $175,000 before a bonus, putting them ahead of Goldman's first-year associates under the new salary scheme.
At Morgan Stanley and PJ Solomon, second-year analysts will earn $105,000. Second-years at Guggenheim Securities will earn $110,000, and at William Blair they'll earn $115,000.
All eyes have been on Goldman Sachs during Wall Street's pay-raise frenzy throughout the spring and summer. The firm's culture in regard to junior employees came under scrutiny in March after two leaked presentations shined a light on what its analysts called draconian working conditions throughout the past year.
Since then, Wall Street's biggest banks — JPMorgan, Morgan Stanley, Citigroup, and Bank of America — have raised junior bankers' salaries. Some Goldman analysts told Insider in July that the firm's reluctance to make a move on salary had stoked consternation at junior levels.
