Barclays has followed Wall Street rivals by hiking the base pay for entry-level bankers to $100,000, bringing it in line with the increase announced by JPMorgan earlier this week.
The UK lender has told its US-based juniors in investment banking that their pay will increase by $15,000 for analysts and $25,000 for associates and vice presidents, according to those contacted by Financial News. The pay rises have yet to be communicated to City-based employees, according to two juniors contacted by FN, but are expected to be global.
Barclays declined to comment.
READ Banks in staffing crisis as 70% of burned-out juniors flee: ‘This is ridiculous’
The pay rises mean that first year analysts will receive $100,000 as a base salary. This matches JPMorgan, which also increased pay for its juniors, effective 1 July, despite executives stating that salary increases would send out the wrong message during an April townhall meeting.
Bank of America also increased salaries for juniors by up to $25,000 in April.
Barclays, meanwhile, did not pay out bonuses for analysts moving to the second rung of the career ladder this year, a move that left some junior disgruntled, FN reported.
Investment banks have increased pay amid a surge in departures at the junior level. Analysts and associates contacted by Financial News said their teams had been depleted by up to 70%.
European banks have been particularly badly affected by departures, with recruitment sprees at Wall Street rivals including Goldman Sachs and JPMorgan leading to a number of exits.
Record dealflow has led to many juniors working 100-hours weeks, a plight highlighted by a group of 13 Goldman Sachs analysts in a leaked presentation in March that has prompted banks to roll out special bonuses and overhaul working practices.
Bloomberg first reported Barclays’ pay increases.
To contact the author of this story with feedback or news, email Paul Clarke