HSBC joins rivals in boosting first-year banker pay to US$100,000

[LONDON] HSBC Holdings is boosting pay for junior US investment bankers, the latest lender to increase compensation as the industry reckons with burnout among staff amid a punishing deal flow.

The London-headquartered bank is upping salaries for first-year analysts in its investment bank to US$100,000, up from US$85,000 currently, according to a person familiar with the plans. The bank introduced pay rises for existing analysts and associates in May.

HSBC joins a string of banks boosting pay for junior bankers as the industry experiences one of its busiest years in memory. A scathing internal presentation by junior analysts at Goldman Sachs on their workload set Wall Street abuzz earlier this year.

Goldman, Credit Suisse, Morgan Stanley, Citigroup, Deutsche Bank and JPMorgan are among those increasing wages as the competition for talent heats up.

Banks are also trying to curb the industry's work-till-you-drop culture, with firms promising to better enforce policies against weekend work.

BLOOMBERG