Goldman Sachs has been at the forefront of avoiding extending to younger investor bankers the kind of major anomalies that rivals JPMorgan and Citigroup have made in recent weeks, among others.
But in Goldman’s second-quarter earnings call with analysts on Tuesday morning, CEO David Solomon offered the strongest indication that the company is considering hitting key companies – however, an announcement may still be a few weeks away.
“We’ve always paid very competitively. We’ve always been a paying agency for performance,” Solomon said when asked by UBS researcher Brennan Hawken about recent media coverage “of lower bankers’ frustration” about key companies in rival companies.
Solomon referred to the company’s standard annual payroll cycle for analysts, which concerns the financial analyst at the end of the year on July 31, followed by bonuses for these employees in August.
“I would tell you to expect to see us pay appropriately during our normal cycle,” Solomon added, although he did not confirm that wage increases were indeed imminent.
The standard for first year analysts’ salaries before bonuses was previously $ 85,000. While Goldman has not raised its salaries so far, rivals such as JPMorgan and Citigroup recently set their first initial banker salaries at $ 100,000.
The CEO also praised the strength of the company’s employees, saying he was “very proud” of the success of the investment-banking department, which he acknowledged as “the quality of people we can attract”.
“We evaluate salaries on a regular basis every year,” Solomon added, “and when necessary, we ensure that our salaries are competitive. We continue to thrive with the best people here and pay them well, especially when they perform – and we play.” . “
On Tuesday, the company reported record second-highest quarterly earnings-banking investment, pulling in $ 3.61 billion and exceeding analysts’ expectations.
A Goldman Sachs spokesman declined to comment further on Solomon’s comments on the call for winnings.
Goldman analysts at the heart of a pay rise revolution on Wall Street – but have not yet taken advantage of it
Goldman Sachs investment banking analysts drew industry-wide attention when two leaks from junior bankers surfaced this spring, sounding the alarm about demanding working conditions.
Earlier this month, current and former Goldman analysts told Insider that their colleagues were increasingly frustrated because they did not receive increases, bonuses or other benefits like their current counterparts in competing companies for months.
Pressure on banks such as Goldman to recruit and retain talent has intensified in recent months as companies face waves of lower wear and tear and simultaneous efforts to bring in new lateral reinforcements.
Compensation has been a mechanism used by rival companies to bolster their side recruitment efforts – or to repel other companies’ efforts to recruit people.
On Sunday, the Financial Times reported that Goldman executives were considering paying basic fees.
But those executors were afraid to set a “dangerous precedent” by going ahead with salary increases in the middle of the calendar year, the FT added, citing people who were informed about the private conversations.