By Lawrence White
LONDON (Reuters) -HSBC has increased pay for first-year analysts in its United States investment banking business to $100,000 from $85,000, a source familiar with the matter said on Wednesday, following similar moves by Wall Street rivals in recent weeks.
The decision, first reported by London-based Financial News, was taken several weeks ago but was communicated to staff this week, the source said, and pay rises for those further up the junior ranks were awarded in May.
HSBC earlier this week topped up its bonus pool by $900 million after reporting more than doubled profits, as it released cash set aside to cover bad loans from the COVID-19 pandemic.
The pay rise comes amid a growing battle to attract junior staff in the banking industry, particularly in the United States, as some talented young people are put off by the long hours associated with investment banking and lured instead by sheen of big tech companies or private equity firms.
That has sparked industry-wide pay increases to try to compete, with Goldman Sachs (NYSE:GS) boosting first-year pay to $110,000 according to media reports this week, after rivals such as Morgan Stanley (NYSE:MS) and JPMorgan (NYSE:JPM) made similar moves.
Goldman could not immediately be reached for comment.
Analyst is the entry-level rank in investment banking, aimed at college graduates. HSBC's analysts undergo a 2-1/2 year programme, staying as a level one analyst for six months before being promoted to level two and then a year later to level three.