Boutique investment bank Stifel has joined larger rivals by increasing pay for entry-level jobs to $100,000 as the sector faces a battle to hold on to younger talent amid an increase in workload and burnout.
The US headquartered investment bank has raised salaries for first-year analysts to $100,000, according to people familiar with the matter. The move has also means an increase to $110,000 for those in their second year of work and $125,000 for third year analysts, they added.
The pay rise comes into force in July. A Stifel spokesperson declined to comment.
Stifel already offered a one-off $20,000 bonus for its analysts and associates in May, Financial News reported.
Stifel’s move mirrors that of larger rivals in recent weeks, with JPMorgan, Barclays and Citigroup all raising base salaries for entry-level investment banking roles to $100,000 in July, FN has reported.
Bulge bracket banks increasing base pay has had a knock on effect, with Japanese lender Nomura also raising pay for entry-level roles within its investment bank to $100,000. Bank of America increased pay for its junior and mid-ranking staff in April.
Investment banks have moved to stem an exodus of junior talent, weighed down by ongoing working from home arrangements during the busiest period the sector has ever seen. Banks have hauled in $60bn in fees during a record first half, according to data provider Dealogic, but analysts have complained of 100-hour weeks and increasing burnout. The strain is particularly acute among first-year recruits, many of whom have yet to meet colleagues or see the office.
As well as recent pay rises, banks have rolled out other perks to keep juniors engaged. Independent investment bank Houlihan Lokey is offering an all-expenses paid holiday as well as a one off $10,000 bonus, while Jefferies gave its analysts and associates a subscription to workout programme Peloton.
UBS has offered a one-off $40,000 bonus for juniors, while Swiss rival Credit Suisse implemented a $20,000 ‘lifestyle’ bonus in April.
To contact the author of this story with feedback or news, email Paul Clarke