NEW RECRUITS HANDED BUMPER PAY RISE

MAJOR investment banks have boosted pay for juniors above $100,000 (£72,000) to keep young bankers in the job.

Morgan Stanley last week became the latest firm to increase pay for bankers in their first year to $100,000 in the US. The bank’s juniors in London have seen their pay jump from £50,000 to £60,000 a year, according to industry website Financial News. Rivals including Citigroup, JPMorgan, Bank of America, UBS and Barclays have awarded similar increases.

Goldman Sachs is the outlier in not increasing starting pay though the investment banking giant could soon follow suit. Chief executive David Solomon recently said the bank had ‘always paid very competitively’.

He said the bank’s next pay review for juniors is this month and that Goldman Sachs will ‘continue to pay competitively and pay for performance’.