Bank of America today said it will raise the salaries of its junior investment bankers amid growing scrutiny over working conditions at major banks.
The lender said the pay boost, which will come into effect next month, reflects the heightened workload caused by a flurry of dealmaking during the pandemic.
“Given our ongoing remote work environment — coupled with the recent pace of market activity as well as client requests and transactions — your contributions and commitment have become more important than ever to the continuous success of our deal teams and client relationships,” the bank said in an internal memo seen by City A.M.
It is understood US-based analysts will receive an extra $10,000, while associates and vice presidents will be handed a raise of $25,000. Salaries for locations outside the US will increase by a similar percentage. Bank of America declined to comment.
The bank is also launching a new scheme dubbed “Junior Banker Candid Conversations”, which it said will enable staff to give feedback on issues such as workload and work/life balance.
Bank of America is the latest major bank to hand out additional incentives to staff amid concerns about conditions for employees.
A group of Goldman Sachs bankers last month complained of “inhumane” conditions at the investment bank, saying 100-hour working weeks were damaging their mental health.
Archbishop of Canterbury Justin Welby today waded into the row, describing the working conditions as “plain wrong”.
Chief executive David Solomon has since vowed to ease the strain on junior bankers, including by further enforcing a rule stating they are not allowed to work on Saturdays.
Meanwhile Credit Suisse has offered junior bankers a $20,000 “lifestyle” bonus and new Citigroup boss Jane Fraser has enforced Zoom-free Fridays at the bank.