(Changes sourcing, adds background)
July 28 (Reuters) - Morgan Stanley has raised the base pay for first and second-year bankers in its investment banking and global capital markets divisions, a person familiar with the matter told Reuters, following a trend set by Wall Street peers.
First-year bankers in both the divisions would now earn a minimum $100,000, while second-year bankers’ base pay would now begin at $105,000, increasing the pay by $15,000 at both levels, said the person, who declined to be identified.
The raises were announced internally on Wednesday and will come into effect from Aug. 1, Business Insider reported earlier in the day.bit.ly/3f1PtSg
The hike was based on a review of annual compensation, the report added, in order to adjust pay with market conditions as part of the bank’s normal course of business.
The investment bank’s move comes weeks after Citigroup Inc said it would raise base pay for junior bankers at its banking, capital markets and advisory division.
Wall Street banks have been introducing incentives to younger staff after a group of first-year analysts at Goldman Sachs Group Inc complained of long hours and “unrealistic deadlines” in an internal survey in March.
That triggered salary increases across the industry, as the world’s biggest banks compete to attract and retain top talent.
Reuters, citing sources, had reported last week that Deutsche Bank AG and UBS Group AG planned to raise salaries for their junior bankers. (Reporting by Sohini Podder and Anirudh Saligrama in Bengaluru and Elizabeth Dilts Marshall in New York; Editing by Shailesh Kuber and Maju Samuel)