Pay for interns at major Wall Street banks and investment funds has increased by nearly 40% between 2021 and 2022. This unprecedented growth is fueled by the need to attract more top talent and to address labor shortages in these professions, which stand in direct competition with technology companies, and often involve hefty workloads. On Wall Street, some interns can be paid up to €15,000 per month.
Times are tough, even for Wall Street. For the past two years, the world's financial powerhouse has been competing with Silicon Valley for upcoming talent. In order to avoid being "robbed" of interns by technology firms, the banking sector has decided to increase compensation. Between 2021 and 2022, the world's leading banks have increased their interns' pay by about 40%, according to financial career site Wall Street Oasis, cited by Bloomberg.
"These are record numbers for intern pay, especially what we are seeing in 2022," Patrick Curtis, founder of Wall Street Oasis, told Bloomberg. He said it was the highest increase since his company launched in 2006.
According to a recent Glassdoor list of the highest paid internships in 2022 in the United States, Capital One Bank pays its interns a median monthly salary of $8,333, or €7,700. The Virginia-based company comes in second in this ranking dominated by the technology sector, alongside Uber. Roblox comes out on top with a median pay of $9,667 (9,000 euros).
But according to Bloomberg, some interns in the banking industry manage to secure compensation above $10,000, depending on the role. Quantitative trading and engineering internships, as well as investment banking analyst internships, are said to pay the most, especially in New York where the cost of living is high. For example, according to Bloomberg, interns at the trading firm Jane Street are paid $16,356 per month, or €15,000.
Vying for fresh talent
Traditionally, Wall Street interns are used to earning comfortable salaries as they shoulder a significant workload (about 100 hours of work per week). But now, these working conditions don't seem to be quite so appealing to students and recent graduates.
According to Bloomberg, the finance sector has seen a decline in reputation following the 2008 crisis. Young graduates now prefer to pursue a career in Silicon Valley, which is more attractive than Wall Street thanks to more flexible and less strenuous working conditions.