Facing stiff competition from thriving tech companies, many investment banks have had to open up their purse strings to land top-level interns. This is particularly true in the U.S., where Silicon Valley looms large. Wall Street firms are paying a premium for interns this year. Investment banks in London haven’t felt the need to do the same.
We went to Glassdoor to compare current salaries for summer analyst interns working in investment banking divisions (IBD) at 15 of the largest banks in New York and London. These are full-time summer analysts who are likely working 80-100 hours a week; we disregarded sophomore university students who may be paid hourly as well as interns who work in non-IBD divisions like technology and wealth management who tend to earn much less.
Looking at the numbers below, the most obvious narrative is that the difference in pay between banks in New York and London may be as wide as its ever been, even when taking into account the devaluing of the pound. Banks in New York simply don’t have much choice. Tech companies like Google and Facebook pay interns prorated salaries that top out at around $88k while offering way more perks and a better work-life balance. Many banks in New York have increased intern salaries to be on par with Silicon Valley.
In fact, it almost seems as if they came together and agreed upon a number. Seven of the 15 banks pay the average New York summer analyst roughly $85k, including all three domestic names you’d expect: Goldman Sachs, J.P. Morgan and Morgan Stanley. The surprise at the top is Deutsche Bank considering its recent decision to cut 1,000 jobs in the U.S., but offers were likely made before Deutsche announced its new strategy. Besides, cutting off the intern pipeline is a rare cost-saving measure.
Over in London, intern salaries are depressed by around 25% compared to their counterparts in New York. Big payers in the U.S. like Goldman Sachs and Credit Suisse are taking a more measured approach in London. Both banks also finished in the bottom-third when we did this exercise a year ago. Deutsche Bank and homegrown Barclays again led the way alongside RBC Capital Markets.
One note of possible interest: banks tend to advertise pay for summer analysts as prorated annual salaries rather than breaking out a lump sum for the full 10 weeks. It’s a more impressive sounding number and acts as a good starting point for potential full-time offers. But when you break the numbers down, summer analysts at top-paying New York banks will only make around $2.5k more during their internship than those at the worst-paying Wall Street banks. While that likely sounds like a lot of money to a student, it amounts to a drop in the bucket once their banking career gets started.
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