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Goldman Sachs has become the latest of the major U.S. investment banks to raise salaries for junior staff in response to complaints about burnout among new hires caught in a trading boom during the pandemic.
The issue of burnout among younger employees became particularly sensitive at Goldman after a group of first-year employees spoke out about the effects of grueling hours on their mental health and led to a fierce internal debate about compensation.
Some senior executives have argued that raising junior salaries, which are fixed and cannot be easily reduced, could set a “dangerous precedent” and attract “mercenaries,” the Financial Times reported last month.
First-year analysts will now earn a base salary of $ 110,000, which will rise to $ 125,000 in year two, according to people familiar with the decision. Those with the highest associate rank will receive a boost to $ 150,000. Figures do not include annual bonuses, which may be multiples of wages in good years.
The increases mean Goldman will have one of the most generous starting compensation packages in the industry, having previously paid junior bankers less than their peers, according to Wall Street Oasis, a website that tracks compensation.
Five other articles in the news
1. Tencent Imposes Controls to Combat Gambling Addiction in Children The Chinese tech giant introduced new controls to limit the time children spend playing its games after state media called the gaming industry a “spiritual opium.” The new restrictions will initially only apply to its flagship title Honor of kings.
2. Carbon offsets go up in smoke America’s forests that generate the carbon offsets bought by companies like BP and Microsoft are on fire as fires rage across North America. Companies’ promises of net zero emissions rely on such projects to offset the carbon dioxide they generate.
3. IMF warns against crypto as national currency The multilateral lender has warned against using cryptocurrencies as legal tender as El Salvador prepares to become the first country to allow bitcoin payments for everything from haircuts to taxes.
4. Amazon’s union vote should be renewed, says US labor council official A failed vote to unionize at an Amazon warehouse in Alabama should be repeated amid concerns the tech giant improperly influenced workers. “Amazon’s behavior throughout the electoral process was despicable,” said Stuart Appelbaum, president of the Union of Retailers, Wholesalers and Department Stores.
5. Belarusian opposition leader urges West to toughen sanctions Western countries must toughen sanctions against Belarus to pressure President Alexander Lukashenko to restore democracy and end deepening repression, opposition leader Sviatlana Tsikhanouskaya told the Financial Times, as a result of the controversy surrounding Belarusian athlete Krystsina Tsimanouskaya.
Summary of the Tokyo Olympics
Simone Bilès won a bronze medal on beam, a week after retiring from several competitions to focus on her sanity. She won her seventh career Olympic medal and is now tied with Shannon Miller for the highest tally in American gymnastics.
Karsten Warholm broke his own world record earlier today in the biggest men’s 400-meter hurdle race ever. The 25-year-old Norwegian finished in 45.94 seconds, breaking his previous record of 46.70 and becoming the first man to finish in under 46 seconds. American Rai Benjamin won silver.
New Zealand weightlifter Laurier Hubbard became the first openly transgender athlete to compete in the Olympics.
How to have russian athletes won medals when Russia was banned from the Olympics? Murad Ahmed and Max Seddon explain. (FT, NPR)
Add ‘Tokyo Olympics” to myFT for all of our Games coverage, and don’t miss our “Table of alternative medals”.
San Francisco and six Bay Area counties yesterday became the last regions in the United States to reinstate a universal mask mandate for indoor public places in a bid to contain the spread of the highly virulent Delta Covid-19 variant.
Officials of China now believe the main chain of transmission for the latest outbreak in the country is from an infected plane that arrived from Russia on July 10. The number of cases has risen to 83 today.
the IMF agreed to a $ 650 billion allocation of its Special Drawing Rights to boost pandemic finances in low- and middle-income countries.
French pharmaceutical group Sanofi will acquire its partner Translate Bio for $ 3.2 billion, as it makes a big bet on the future of mRNA as a transformative technology for vaccines and therapies.
Register now for our Coronavirus Business Update newsletter and follow the latest developments on our live blog.
The day to come
Special elections Coal lobbyist Mike Carey is hopeful that former President Donald Trump’s backing will help him secure the Republican nomination in Ohio’s 15th legislative election today. In the state’s 11th Congressional District, the battle is between progressive Democratic Party Nina Turner and centrist Shontel Brown.
Summary of earnings Chinese e-commerce giant Alibaba is releasing its results for the first quarter of fiscal 2022 today after weeks of close scrutiny by Chinese authorities. Lyft, the carpooling service, is also reporting results. Read the full list here.
Meng Wanzhou audience The chief financial officer of Chinese tech giant Huawei will return to a Canadian court today for a final round of hearings on her possible extradition to the United States. (Straits Times)
Raisi takes power in Iran New Iranian President Ebrahim Raisi will be sworn in as the Islamic Republic is rocked by protests over water and electricity shortages and prepares for talks on the 2015 nuclear deal.
What else do we read
Is Joe Biden’s Presidency Vulnerable to Inflation? The U.S. rebound from the depths of the coronavirus crisis has been remarkably vigorous after Joe Biden approved $ 1,400 in direct payments to low- and middle-income households and vaccinations prompted the lifting of restrictions and an explosion in spending. The only stain on an otherwise encouraging picture: higher than expected inflation.
The young Chinese “lays flat” on stress A tendency among young Chinese people to withdraw from stressful jobs is the antithesis of the development model that has generated extraordinary growth over four decades. While the young people put the “996” work schedule – from 9 am to 9 pm, six days a week – on notice, Beijing is disrupted. (FT, NYT)
We shouldn’t be optimistic about a declining population The impact of the pandemic on procreation may prove to be fleeting. But it drew attention to the long-term decline in the number of babies women have almost everywhere, writes Sarah O’Connor.
Welcome to the era of the militant accountant In an unexpected modern history, activist accountants have become key advocates of ESG risk standardization, US editor-in-chief Gillian Tett says in this video.
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