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For the second time in the past year, JPMorgan is raising pay for junior-level employees, The Post has confirmed.
The Wall Street giant — which like many other industries is facing a worker shortage as its post-pandemic business cranks up — is giving all analysts and associates a hefty pay bump.
Salaries for first-year analysts will jump to $110,000 from $100,000. Second-year analysts will see their pay increase to $125,000 from $105,000 and third-year analysts will jump to $135,000 from $110,000.
According to people familiar with the bank’s rationale, Chief Executive Jamie Dimon is increasing salaries to make them commensurate with those at other major bulge bracket firms including Goldman Sachs and Morgan Stanley.
“Now the whole Street is basically aligned,” this person adds.
JPMorgan was first to hike compensation for junior employees over the summer. After JPMorgan raised pay, Goldman Sachs and Morgan Stanley announced they’d offer employees even higher base pay than JPMorgan.
JPMorgan declined to comment. Financial News was first to report the salary increase.
The news comes less than a week after JPMorgan posted 4th quarter earnings — and said its operating costs jumped 11% last year to $17.9 billion as the bank doled out heftier salaries.
On the earnings call, Chief Financial Officer Jeremy Barnum singled out the cost of retaining employees as bankers increasingly job hop and demand fatter bonuses.
“It is true that labor markets are tight, that there’s a little bit of labor inflation, and it’s important for us to attract and retain the best talent,” Barnum said on a conference call with reporters.
The increase in operating costs stemming from compensation hit all major banks over the last year as the war for talent reaches a fever pitch. The boom in deals has pushed investment banking revenue higher but also led to major burnout among analysts and associates.
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