Black Friday Sale! 50% Off All Access

Top Investment Banks Boost Intern Pay to $16,000 a Month Amidst Wall Street Talent War Wall Street is dishing out millions to compete for top-tier talent in an airtight labor market.

By Madeline Garfinkle

Entrepreneur+ Black Friday Sale

Our biggest sale — Get unlimited access to Entrepreneur.com at an unbeatable price. Use code SAVE50 at checkout.*

Claim Offer

*Offer only available to new subscribers

Opinions expressed by Entrepreneur contributors are their own.

Top global investment banks are battling to keep quality talent in a tight labor market, with some interns getting a paycheck of $16,000 a month. A nationwide labor shortage continues to leave industries scrambling for quality workers, with the finance sector being hit particularly hard as it simultaneously faces exceptionally high turnover.

The grueling hours and demanding schedules account for widespread dissatisfaction among junior bankers who beg to work only 80 hours a week.

As top firms press on to maintain a steady pipeline of sharp talent, compensation skyrockets to new heights. In the past year alone, intern pay increased by 37.2% at top global investment banks, with some making the equivalent of $200,000 a year.

But it's not just neighboring banks that Wall Street has to fight off for talent. The traditional, suit-and-tie banking firms now have to compete with more modern, flexible tech companies that offer an alternative to Wall Street's notorious 100-hour work week.

Related: Apple Makes Major Moves to Combat Labor Shortage

For decades, Wall Street has been the epicenter for bright and eager graduates to start and advance their careers in the finance industry. Now, with fierce competition and flexible workplace alternatives, the hustle of FiDi doesn't seem as glamorous to fresh talent who might prefer work from home options or – dare I say – the West Coast.

In the past two years, Silicon Valley has become a growing and viable competitor for new talent, with more than half of Glassdoor's highest-paying internships being at tech companies in the California hub.

And yet, despite the competition and changing workplace norms, Wall Street still lures grads hungry to kickstart their careers. Goldman Sachs received a record number of applications for its summer internship program this year, a substantial 27% increase from last year. The surge could be in part due to the pay hike in entry level positions, but applications flooded in droves nonetheless.

Still, the question isn't so much whether talent will stay for the summer or not, but if candidates are in it for the long haul. Although Goldman saw a record influx of applications, its employees continue to report on a toxic and unsustainable work culture – with some naming "bullying" and abuse as reasons for quitting.

Only time will tell, but if Wall Street wants to really compete for top talent, it might take more than a generous paycheck in the long run.

Related: Labor Shortage? Depends on Who You Ask.

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Science & Technology

I've Spent 20 Years Studying Focus. Here's How I Use AI to Multiply My Time and Save 21 Weeks of Work a Year

AI is supposed to save time, but 77% of employees say it often costs more time due to all the editing it requires. Instead of helping, it can become a distraction. But don't worry — there's a better way.

Business News

The Two Richest People in the World Are Fighting on Social Media Again

Jeff Bezos and Elon Musk had a new, contentious exchange on X.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Starting a Business

Why Are So Many Course Creators Struggling if It's 'Such an Easy Business'? Here's the Truth Behind the $800 Billion Industry

Creating an online course is so easy — at least, that's what many "gurus" would like you to believe. There's a lot of potential in the $800 billion industry, but here's why so many course creators are struggling.

Business News

Barbara Corcoran Says This Is the Interest Rate Magic Number That Will Make the Market 'Go Ballistic'

Corcoran said she praying for lower interest rates and people are "tired of waiting."

Business News

Here's How Much Money You Need to Make in Order to Be 'Successful,' According to Each Generation

A new survey by Empower outlines how Americans of different ages define success.