Deutsche Bank AG (NYSE: DB), a top German lender, said that it was raising the salaries of its investment banking analysts. The bank says that it’ll now pay its second and first-year analysts in its advisory and origination departments $105,000 and $100,000, respectively. This represents an increase of $15,000 from their previous salary amounts.
United States analysts that have been promoted to associate levels in the middle of the year will get $150,000, a pay enhancement of $25,000. Globally, those getting associate-level promotions and analysts will get their pay increased by the same percentages. During the mid-year compensation reviews are where the salary adjustments will be shared. August 4 is when formal communication should happen, but changes might not be effective until July 1.
What’s happening on Wall Street
Financial institutions on Wall Street have been giving incentives to their younger staff members Goldman Sachs’ first-year analysts complained of “unrealistic deadlines” and long working hours in an internal survey conducted in March. The four largest consumer banks in the United States, JP Morgan Chase, Citigroup Inc, Bank of America and Wells Fargo announced blockbuster Q2 results after the country’s economy started coming back to life and pandemic loan losses didn’t materialize as expected.
Deutsche Bank’s move means that it would be joining its rivals Barclays Bank and Citigroup Inc in increasing the salaries of its younger analysts. And it seems like a fair deal seeing as how most of these young workers are the ones who handled a lot of capital markets and record deal flow activity this past year. Christian Sewing, the bank’s Chief Executive Officer, is almost completing the bank’s deep turnaround efforts that have come depend a lot on investment-bank profits. He’s looking to retain as much talent as he can in those departments by keeping salaries similar to what the bank’s competition is offering its workers while still trying to ensure an ambitious cost target is met for the following years to come.