Independent investment bank Lazard has increased salaries for junior bankers as smaller firms follow bulge bracket rivals with six-figure starting salaries.
First year analysts in the US at the bank will now be paid a salary of $100,000, according to a memo seen by Financial News and a person familiar with the matter. The raise will be $110,000 for second and third year analysts, bringing it in line with pay hikes at larger investment banks. The new salaries will be valid from 13 August, but will be retroactive to 1 July.
Lazard follows Barclays, Citigroup, Credit Suisse, JPMorgan, Morgan Stanley and UBS among others by increasing pay to $100,000 as banks battle a burnout crisis among their junior ranks amid a surge in deals.
Lazard declined to comment.
As well as raising pay, Lazard has a team of 10-15 investment bankers working in a so-called Lazard Lab, looking at automating time-consuming parts of an analysts’ job that offer little value. It also looks to find junior bankers in less busy areas to work in strained parts of the business – which its head of advisory Peter Orszag described as “commandos”.
“We’re not pretending these are nine-to-five jobs — they’re not, if you come to a place like Lazard, you should expect to work hard,” said Orszag. “But if you don’t have time for meals, or to go for a run and take care of yourself at all, it’s a problem. We’re looking to make the work interesting and challenging, but sustainable.”
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