Financial services company Goldman Sachs said on Monday that it will pay its junior investment bankers after receiving complaints from employees of overwork.
A source told CNBC that these first-year analysts will now receive a basic annual salary of $110,000, higher than the previous $85,000.
As for the second-year analysts, their salary increased from $95,000 to $125,000. Compared with the previous $125,000, employees in the first year will earn $150,000.
According to CNBC, Other investment banks have increased the wages of their employees. Among its competitors, Goldman Sachs is the company that refuses to raise pay the most.
Complaints about long working hours began to circulate in February, when Internal investigation found Junior bankers work nearly 100 hours a week to keep up with “inhumane” workloads and “unrealistic deadlines.”
Some people say that if working conditions do not change, they are ready to resign.
“In this world of remote work, it feels like we must be connected 24/7,” said David Solomon, CEO of Goldman Sachs. “It’s not easy, we are working hard to make it better.”
Solomon told employees in a voice note that it will also work on hiring new junior bankers. He hopes to redistribute these new employees to busier departments to reduce the workload of existing employees.
A person familiar with these changes said that employees are expected to learn about their bonus amounts later this month.
“Our salary has always been very competitive,” Solomon said on an earnings call last month. “We have always been a pay-for-performance organization.”
The official announcement of salary changes is expected to be released this week. The Guardian reports.
