JPMorgan, BofA to raise junior banker pay by 20%

This July 13, 2012 file photo shows the entrance to the JP Morgan Chase World Headquarters on Park Avenue in New York. -- PHOTO: AFP
This July 13, 2012 file photo shows the entrance to the JP Morgan Chase World Headquarters on Park Avenue in New York. -- PHOTO: AFP

NEW YORK (Reuters) - JPMorgan Chase & Co and Bank of America Corp are planning to hike salaries of junior employees by at least 20 per cent, people familiar with the proceedings said.

JPMorgan executives are determined to pay competitively with other banks and are looking at salary increases of at least 20 per cent for some junior employees, a person familiar with the matter said on Wednesday.

Junior bankers at Bank of America Corp will also receive a raise of at least 20 per cent, according to a person familiar with the matter. The raises will go into effect in 2015, the person said.

Goldman Sachs Group is also planning to raise pay for junior bankers by 20 percent next year, the New York Post reported on Wednesday.

The pay raise means that first-year analysts will earn about US$85,000 before collecting bonuses in 2015, the newspaper said. Analysts who have been at the Wall Street bank longer will earn more.

Citigroup Inc is also considering a similar pay raise, Bloomberg reported, citing people with knowledge of the matter.

A Goldman Sachs spokesperson did not immediately respond to a request for comment. JPMorgan, Bank of America and Citigroup were not immediately available for comment outside regular U.S. business hours.

The pay hikes come as Wall Street is making an effort to ease strains on junior bankers by limiting hours they work and compensating them better.