November 28, 2023

Investment Banking

Let Your Investment Banking Do The Walking

Lazard Is Lifting Junior Banker Pay Again to $120,000

  • Publicly-traded investment bank Lazard just informed junior bankers about forthcoming raises.
  • First-year analysts will earn $120,000 before bonus, and second years will make $125,000.
  • The raises go into effect on July 1, according to two people familiar with the matter.

Publicly-traded investment bank Lazard is set to boost compensation for its first- and second-year investment-banking analysts, with base salary raises intended to go into effect on July 1, Insider has learned.

First-year analysts in the US will now see increases of $20,000, setting their new base salary at $120,000, up from $100,000 previously. Second-year analysts will see $15,000 raises up to $125,000 from their current $110,000 as of July 1, according to two people with direct knowledge of the raises.

Lazard previously raised salaries in mid-August last year, amid a firestorm of salary raises sweeping Wall Street’s junior ranks, as Insider reported at the time.

Starting last spring, Wall Street banks raced to implement raises to fend off lateral recruiting and help blunt the sting of high levels of attrition. Burnout and isolation while working from home during a record year of mergers and acquisitions and public offerings pushed many junior bankers to the exits, leaving many investment banks short staffed during peak deal-making periods.

What started as single rounds of salary raises at many firms morphed into second rounds of base comp increases in recent months. Last summer, many firms originally set salaries at $100,000 for first-year analysts, later exceeding that threshold in the cases of a number of banks. 

Insider first reported in late January that first- and second-year analysts at Bank of America had been told they would receive a second round of base salary raises to $110,000 and $125,000, respectively, starting February 1.

Other banks like Goldman Sachs, JPMorgan Chase, and Morgan Stanley pay first-year analysts $110,000 before bonus, while boutique firm Evercore starts its entry-level bankers at $120,000. A handful of firms such as Wells Fargo and UBS, which tend to rank lower on most M&A league tables, still start their first-year analysts at $100,000.

For a full round-up of what analysts and associates earn at a dozen firms across Wall Street, check out Insider’s comprehensive junior banker salary tracker here.

Are you a young person on Wall Street? Get in touch with this reporter. Reed Alexander can be reached via email at [email protected], or SMS/the encrypted app Signal at (561) 247-5758.

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