A couple weeks back, a report circulated that Wall Street banks were considering freezing compensation for junior employees. The firms were hesitating, however, supposedly on account of the backlash they feared would occur from failing to keep "potential future stars...engaged and happy." Yes, they were terrified at the consequences of how their junior mistmakers would react to the news and didn't want to pull the trigger unless everyone promised to do the same, preventing a dire situation wherein a handful of first and second year analysts quit to join firms where their unique talents would be appreciated. Credit Suisse CEO Brady Dougan, for one, has decided not to be afraid anymore.
"Word is that second year Credit Suisse analysts will receive no base increase from 80k and no bonus this year (as for first years, it would seem unlikely that they'd get bumped from 70k to be making the same as second years). Third years getting promoted to associate are HOPING for 100k base. Last year first year associates made 125k base so this is a huge reduction of 25k. Much unrest and most expect huge drains as people find other jobs."