It’s a perfect storm of opportunity for college graduates with finance degrees and the desire to work on Wall Street. A combination of high turnover and the fact that an increased number of junior associates have bailed on their banking gigs because of the 100 work weeks means big Wall Street investment banks are paying big bucks to interns.
Pay has gone up 37.2% for this internship season, according to the finance career site Wall Street Oasis.
The blue-chip banks that have had their pick of smart and motivated students coming out of college are now competing with tech companies that offer the opportunity to work from home, and private equity firms are scooping up top talent as well, creating a talent war that puts the kids starting their careers in the driving seat.
A trading firm on Wall Street called Jane Street is paying interns and junior bankers just starting out over $16,000 per month. That’s roughly a $200,000 per year salary.
Citadel is scratching checks of almost $14K per month for interns. Bridgewater Associates, Akin Capital, Cowen and Company, Point72 Asset Management, D.E. Shaw, and Quantlab all pay over $10,000 per month.
Hedge funds are paying big bucks to their vintners too, but there is a rub: these internships are not easy to get. The acceptance rate at hedge fund Citadel is 0,8%, and those accepted are making $14,000 or more to start.
With the surge in pay for junior bankers on Wall Street, applications are going up too. A record 236,000 people applied for Goldman Sachs’s internship program. Morgan Stanley saw a significant increase too.