Millennial Bankers Reap Raises as BofA, Goldman Fight Defections

(Bloomberg) -- A new generation of Wall Street bankers is about to get a raise, as firms open wallets to head off defectionsto investment funds and Silicon Valley.

Bank of America Corp. plans to boost salaries by at least 20% next year for junior staff in trading and investment banking globally, while Goldman Sachs Group Inc. increases salaries for junior U.S. workers by about that much, according to people briefed on the decisions. JPMorgan Chase & Co. and Citigroup Inc. are considering similar plans, people with knowledge of those deliberations said. Morgan Stanley also decided this year to raise salaries for some mid-level bankers.

Wall Street firms have cut hours and improved conditions for junior bankers to stanch the loss of talent to competitors such as private-equity firms and hedge funds, and to technology companies whose stocks have soared. Charlotte, North Carolina- based Bank of America also is among investment banks that have encouraged analysts to take time off on weekends.

“These firms want to hire the smartest of the top grads, that’s part of building for the future,” said Paul Sorbera, president of Alliance Consulting, a New York-based search firm. “They’re competing with tech firms that are a little sexier than finance to the younger generation.”

Bank of America is boosting fixed pay for summer associates who have been asked to join the company around August 2015, said the person briefed on the move, requesting anonymity because it hasn’t been announced publicly. Some new employees already working there also will get raises, while bonuses remain variable, the person said.

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