Last July, Morgan Stanley did something revolutionary in the post-financial crisis era: it raised pay for junior bankers by 25%, in an attempt to "improve working conditions and retention." Naturally, this led to other banks feeling the pressure to offer their youngest employees a little something extra, lest they jump ship to the House o' Gorman. Goldman Sachs and JP Morgan quicklyfollowed suit, with Jefferies, Credit Suisse, and BofA bringing up the rear. The one bank unconcerned about incurring the wrath of the under 30 crowd? Deutsche Bank, which took its time pondering whether raises were all that necessary. Ultimately, it appears to have decided the answer is yes, and maybe then some.
While most US banks (and UBS) hiked salaries for their junior investment bankers months ago, Deutsche has been dragging its feet. However, recruiters say the German bank finally informed juniors that it’s hiking their pay last Friday. “I’ve heard from three people who work at Deutsche that their salaries were increased last week, and we’re being advised that juniors will now join the bank on the new higher salaries,” says one recruiter, speaking on condition of anonymity. “Third year associates have gone from £95k ($143k) to £130k,” he adds...What’s less clear is whether Deutsche’s pay increase was backdated to January, as recruiters say Deutsche’s juniors were expecting. If it was, IBD bankers at the German bank will be in for a large payday at the end of this month.
Related: Pay Hike Watch ’15: The Youth Of Goldman Sachs; Pay Hike Watch ’14: Bank of America; Pay Hike Watch ’14: Credit Suisse; Pay Hike Watch ’14: Jefferies; Pay Hike Watch ’14: Raises For Everyone (Under 25)!; Morgan Stanley Has A Treat For Senior Junior Bankers