As a top investment bank in Wall Street and even globally, Goldman Sachs has always been a dream workplace for those who want to develop a career in investment banking. Naturally, Goldman Sachs’ compensation for its employees, especially for front office positions,has been a focal point. Based on public data, this article makes a detailed analysis on the salary level of Goldman Sachs Investment Banking Division Associate position.
Goldman Sachs pays the highest base salaries among peer investment banks
According to compensation survey data collected from Goldman Sachs’ employees in 2017, the base salary for a 1st Year Investment Banking Division Associate is $130,000, which shows Goldman Sachs pays the highest base salaries among peer investment banks for junior to mid-level front office positions.
Average annual total compensation of $239K for Goldman Sachs’ 3rd Year Associates
With bonuses included, average total annual compensation for a 3rd Year Goldman Sachs Investment Banking Division Associate is about $239K, which ranks top among global investment banks.
Wide gap between base salary and bonus indicates great bonus potential
There exists a wide gap between base salary ($130K) and average total compensation ($239K) for 3rd Year Goldman Sachs IBD Associates. This gap is mostly filled by annual bonuses, which means Goldman offers great bonus potential to reward employees’ strong performance.
Salary growth from Analyst to Managing Director shows high career development prospects
The base salary for a Managing Director at Goldman Sachs is about 5 times of an Investment Banking Division Analyst’s base salary. Together with bonus differences, the total compensation gap is even larger. This demonstrates high career development prospects and motivates junior bankers to excel and get promoted.
In conclusion, Goldman Sachs offers very competitive salary and ample bonus potential for its Investment Banking Division Associates, which to a large extent explains why Goldman Sachs is among the most popular investment banks for talent acquisition and retention.