Soothing Complaints About 100-Hour Workweeks?… Goldman Sachs Raises Starting Salary by 30 Million Won

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] Global financial firm Goldman Sachs is expected to raise the salaries of all first-year analysts by at least $25,000 (approximately 30 million KRW). Earlier this year, as complaints from new analysts about nearly 100-hour workweeks spread across the global investment banking industry, Goldman Sachs joined the industry's competition to increase starting salaries to appease these concerns.

On the 2nd (local time), the Wall Street Journal (WSJ) and Bloomberg News, citing sources familiar with the matter, reported that "Goldman Sachs is expected to raise the salaries of first-year analysts from the current $85,000 (approximately 100 million KRW) to at least $110,000 (approximately 130 million KRW)."

Additionally, the media reported that "the salaries of second-year analysts will also be increased from the current $95,000 (approximately 100 million KRW) to around $125,000 (approximately 140 million KRW)."

WSJ stated, "Goldman Sachs is expected to officially notify employees of this starting salary increase plan within this week," adding, "About 1,000 analysts worldwide are expected to benefit from the salary increase." The media also noted that Goldman Sachs' starting salary increase rate reaches 30%.

Furthermore, Bloomberg News reported that Credit Suisse, a major Swiss financial firm, is also expected to raise starting salaries to a similar level.

Goldman Sachs' salary increase for junior employees comes amid a broader trend of starting salary hikes spreading across the global investment banking industry.

Prominent financial firms such as Morgan Stanley, Citigroup, Deutsche Bank, and JP Morgan have also raised analysts' starting salaries to exceed $100,000.

This competition to raise starting salaries is interpreted as a response to growing backlash from new employees over intense workloads, aiming to alleviate such dissatisfaction.

Earlier in March, first-year and below analysts at Goldman Sachs revealed through an internal survey that most colleagues work an average of 95 hours per week. In the survey, analysts described these working hours as "damaging to physical and mental health" and said "it is almost at the level of abuse."

As the harsh working conditions of analysts became public, Goldman Sachs introduced measures such as guaranteed Saturdays off and increasing the number of new hires. Nevertheless, dissatisfaction among junior analysts did not subside, leading the bank to ultimately implement the starting salary increase, analysts say.

The brutal work intensity in the investment banking industry, including Goldman Sachs, has often been criticized in the past. In 2013, a 21-year-old German university student interning at Bank of America's Merrill Lynch London office died. He had worked 72 hours straight without sleep to impress his superiors and secure a full-time position and died while showering at his accommodation.

This content was produced with the assistance of AI translation services.