According to analysis from Financial News, investment banks have in recent times spent more on compensation than at any point since the 2008 financial crisis. As they vie to retain junior associate talent amid a wave of pay hikes on Wall Street, Goldman Sachs has instituted new bonuses for its juniors. Based on conversations with headhunters as well as juniors themselves, it is said that those operating in the second tier of the Goldman hierarchy were paid bonuses of between 175% and 200% of base salary for 2021.
While actual numbers are related to rank, performance, and division, a few associates have even reported total annual compensation of up to $500,000. According to figures compiled by Dartmouth Partners, last year Goldman associates were given bonuses of between 85% and 95% of base salary.
In what may be a case of following closely in the footsteps of its rival J.P. Morgan, Goldman is also increasing salaries. Though exact numbers are not known, rumor has it that first-year associates are now paid $200,000, which actually beats J.P. Morgan's first-year-associate salary by $25,000. Associates at Goldman begin at two years of industry experience and keep the rank for four years ahead of a vice president promotion.