- Wells Fargo is raising base compensation for CIB analysts and associates, Insider has learned.
- First-, second-, and third-year analysts' respective base pay will be $100,000, $105,000, and $110,000.
- First-, second-, and third-year associates' respective base pay will be $175,000, $200,000, and $225,000.
Wells Fargo has become the latest Wall Street bank to raise base compensation for its junior bankers, following Goldman Sachs, Morgan Stanley, and JPMorgan Chase, Insider has learned.
America's third-largest bank by assets will raise base comp for analysts and associates in its corporate and investment bank, a Wells Fargo spokesperson confirmed to Insider.
"We can confirm the adjustment of base pay in certain client-facing positions across the Corporate and Investment Bank, which ensures we remain competitive and aligned with market practices," the spokesperson said. "We are committed to offering compensation that attracts, motivates, and retains talent."
First-year analysts in Wells Fargo's corporate and investment-banking division will get a base-comp bump to $100,000, according to numbers first shared by the financial-meme account Litquidity.
Second-year analysts will earn $105,000, and third-years will earn $110,000 before bonuses, the account said.
These are $15,000 raises. Previously, first-, second-, and third-year analysts at the bank earned $85,000, $90,000, and $95,000, respectively, according to a person familiar with the situation who spoke on condition of anonymity to discuss company matters.
Wells Fargo associates are also getting pay bumps, according to Litquidity. First-, second-, and third-year associate base pay will be bumped up to $175,000, $200,000, and $225,000, respectively.
These raises are retroactive to July 1.
Wells Fargo offered analysts and associates special bonuses of up to $20,000 in April, Insider reported.
In July, Wells Fargo's corporate- and investment-banking division reported $1.23 billion in revenue in its second-quarter earnings, down 18% from $1.31 billion in the same quarter last year.
In its earnings report, the bank said that "lower debt capital markets revenue, the impact of lower interest rates, and lower deposit balances" because of its restrictive asset cap were responsible for driving the reduced revenue performance.
Wells Fargo Securities ranks 14th by initial-public-offering revenue in the US and does not rank in the 20 highest-revenue producers by mergers and acquisitions, according to Dealogic data.
Wells Fargo follows Goldman, JPMorgan, and other competitors
Wells Fargo's decision to increase salaries follows that of other large investment banks and reflects that the $100,000 first-year-analyst starting salary has rapidly become the industry standard in the wake of pay bumps to that amount by JPMorgan Chase and Citigroup in June.
Some banks have increased the first-year-analyst salary beyond $100,000. Goldman Sachs increased compensation for first-year analysts to "at least $110,000," Bloomberg reported. Insider first reported that the firm set the salary for second-year analysts at $125,000 and the salary for first-year associates at $150,000.
High levels of junior-banker attrition and burnout, as well as a tight labor market, have increased the pressure that banks have felt in recent months, while deal volumes remain sky high.
Morgan Stanley raised the salaries for first- and second-year investment-banking and global-capital-markets analysts up to $100,000 and $105,000, respectively, Insider first reported.
Separately, Bank of America announced $10,000 raises for analysts and $25,000 raises for associates and vice presidents, Insider reported in April. A number of other banks, from Barclays to Guggenheim Securities, have also raised pay.
Check out our full rundown of the investment banks that have increased junior bankers' paydays this year.
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