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What Is an Average Goldman Sachs Salary?
Goldman Sachs (GS) has always paid its employees well. The average Goldman Sachs employee made $404,000 in 2021. However, it is important to remember that high-level executive compensation is included in these numbers, and is not an accurate depiction of the non-executive compensation.
In recent years, Goldman Sachs has been boosting salaries in order to draw talent away from tech and other start-up sectors. In 2021, a first-year analyst at GS starts at $110,000, which is a nearly 30 percent increase from the prior starting salary of $85,000. Second-year analysts receive a boost from $95,000 to $125,000, and first-year associates saw a jump from $125,000 to $150,000.
Since the firm’s reported headcount includes temporary staff and consultants, who will typically not earn a full annual salary, full-time compensation for many Goldman Sachs employees may be markedly higher than the average while for others, it will be much lower.
Key Takeaways
- Goldman Sachs raised their salary considerably in 2021 due to both revenue increases and inflation considerations.
- Goldman Sachs pays well even at the bottom of the pyramid, with summer interns making 50 percent more than the median household income in New York City.
- Investment banking as a whole is feeling the brain drain as top-level employees move to tech and have been increasing their compensation packages in order to retain talent.
Understanding Salary at Goldman Sachs
Investment banking salaries are largely dependent on performance and experience, with bankers higher in the ranks earning more than those earlier in their careers. Those who deliver consistently superior results will be handsomely rewarded. While it is common for analysts to make over $100,000 per year at investment banks, managing directors earn much more, sometimes over $20 million.
Goldman bankers based in the New York City area are doing much better than most New Yorkers. In New York City, median household incomes were $63,998 in 2019 (when the Census Bureau last updated).
While banker salaries were a hot topic during the 2007/2008 Global Financial Crisis, the issue has become less prevalent in recent years. As more investors learn to use tools at their disposal such as robo-advisors or simply making their own investments from home, investment banks are less of a topic of conversation.
What Is the Average Salary of a Goldman Sachs Employee?
Before answering, it is important to remember that the average salary of a Goldman Sachs employee is not the average salary of an average employee. The massive benefit packages given to executives and top earners are factored into the lofty $404,000 average compensation. The enormous take-home pay of executives lifts this number considerably.
How Much Does a Goldman Sachs Internship Pay?
A Goldman Sachs internship salary will vary largely based on the location of the office and the division. Interns are paid an annual rate which is prorated against their total time spent there, which is often in the summer to accommodate university scheduling and runs eight to ten weeks. The salary is less than first-year analysts and is typically between $85,000 and $100,000.
Do Goldman Sachs Employees Make More of Less Than the Industry Average?
It isn’t possible to provide an apples-to-apples comparison of industry salaries. Due to there being so many division within investment banking, you cannot really compare what an analyst makes versus a risk manager. However, the nature of investment banking is meritocratic so in order to retain top talent, banks must remain competitive in their compensation packages.