New York Post: Scott Rostan “Goldman Sachs plans 20% pay hike for junior bankers”

By Kevin Dugan

First they get a day off. Next they get a raise.

Goldman Sachs’ junior bankers — who are known to log grueling 100-hour work weeks — are looking at a pay hike of more than 20 percent next year, two people familiar with the bank’s plans told The Post.

That would boost the base salary for some first-year analysts to about $85,000 — before they even collect their bonuses, one source said.

Second- and third-year analysts would likely be making significantly more, depending on where they work within the bank and how much that division makes, the source said.

There are no plans to change how much they could make in bonuses, according to the person.

Leslie Shribman, a Goldman spokeswoman, declined to comment.

The prospective raise, which hasn’t been announced by the bank, comes after Goldman in October granted its analysts Saturdays off.

Raises for first-year analysts have been slow going since the start of the 2008 financial crisis, said Scott Rostan, chief executive officer of Training the Street, which helps college graduates get a foothold on Wall Street.  “You’re probably going to see a domino effect,” he told The Post.

First-year analysts at large banks could expect to get a bonus of $20,000 to $50,000, depending on how well they do and how much their division rakes in, he added. Wall Street firms have been taking steps to make life more bearable for younger bankers in a bid to boost retention.

Investment banks are losing out to private-equity firms and hedge funds, which can pay more and offer more perks like frequent traveling, Rostan said. 

Some large private equity firms could offer an experienced Wall Street analyst as much as $200,000 a year in base salary before bonuses, he said.

 Last month, Wall Street bank Morgan Stanley reportedly increased its salaries for mid-level bankers by as much as 25 percent.

Bank of America has also taken measures to ensure that analysts and associates take a minimum of four weekend days off per month.

Shares of Goldman, run by CEO Lloyd Blankfein (left), changed little Wednesday, rising 7 cents, to $174.03.