Bank Of America, Barclays And Other Banks Are Offering Five-Figure Raises, Time

A little bad publicity goes a long way. In late March, the legendary investment bank, Goldman Sachs, was accused by a group of young bankers of making them work 100 hours a week. 

The Wall Street analysts claimed that they were forced to endure a punishing schedule that left them exhausted and unable to have a social life. To ameliorate the situation, Goldman decided to offer them Saturdays off and said they’d find additional help to alleviate the workload. One day off doesn’t seem like much, but in the hustle culture on Wall Street, it’s a start.

Investment banking is a highly competitive field. Now that Goldman set the precedent, other banks are one-upping each other by giving lavish salary increases, bonuses, days off and Peloton bikes to Gen-Z bankers.

Bank of America Corp., one of the nation’s largest banks, said it will enhance the salaries of its junior investment bankers starting May 1, according to Reuters. The salary increases are being awarded to show its recognition. While many sectors have been hit hard by the effects of Covid-19, financial firms have done well. Trading throughout 2020 and the first quarter of 2021was robust and underwritings of IPOs and Spacs were blazingly hot. This created the need for bankers to put in long, grueling hours to keep up with business demands.

The junior-level BofA bankers will receive an extra $10,000. More senior personnel, such as vice presidents, are slated to receive a $25,000 raise.  

Additionally, Barclays, the U.K.-based bank with a large presence in the United States, is changing its policies in an effort to protect the mental health of young investment bankers. The British bank is allowing bankers to curtail their working hours. Associates won’t have to work from 9 p.m. Friday to 9 a.m. Sunday—except when it’s necessary. The investment professionals will be advised to actually take their two five-day vacations a year to decompress from the stress. 

John Miller, Barclays’s global head of banking, said about the new changes, “This is really meant to express in a very material way that culture of care for mental health.” Miller added, “The working-from-home dynamic, the isolation, we are keenly aware of those challenges and we want to be keenly responsive to those challenges and empathetic and ensure that we are investing appropriately in the mental health of our team.” The brokerage firm also plans to start a program to help its younger staff members build a better work-life balance and open channels of communication with management to discuss issues, called “Junior Banker Candid Conversations.”

Jefferies Financial Group, a midsized investment bank, graciously offered its over 1,000 junior bankers the option of “a Peloton bike with a one-year subscription, a Mirror home-workout system with a one-year subscription or a package featuring an Apple Watch SE, an iPad Air and AirPod Pros with AppleCare+,” according to Fortune.

Jefferies CEO Rich Handler said about the largess, “This is the very least we can do.” Handler added, “Everyone at Jefferies is deeply appreciative of the hard work and sacrifice all of our analysts and associates have made since the start of Covid-19.”  

International Swiss-based bank Credit Suisse informed investment bankers that they will receive $20,000 bonuses. This would be for entry and mid-level bankers. There will be increases to the salary of workers who are below the “managing director” level. The bank will also allow casual dress attire when people return to the office.  

A company spokesperson said, “Credit Suisse’s capital markets [and] advisory management recognizes and wants to reward the efforts of our people who have not only managed to support our clients through unprecedented deal volume, but also increased our share of the market.”

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