Wall Street firms may be laying off employees, but they’re competing hard for summer interns, according to Bloomberg. Citadel and Citadel Securities have raised compensation to $19,200 a month, before taxes, from $14,000 last year — and they’ve seen a 65% increase in applications for intern positions. The reason for the industry’s largesse is twofold: to offset unfashionable return-to-office policies at many of the firms and to divert candidates away from tech, where the number of layoffs has exceeded those on Wall Street by the tens of thousands, Bloomberg notes.
Other Wall Street offers for interns:
- Barclays is paying an annualized rate of $110,000.
- Citigroup pays $50 an hour.
- Bank of America offers a median hourly rate of $41, with a bump to $46 if interns are willing to work in the Big Apple.
- Many banks also offer perks on par with those received by employees, including sign-on bonuses, living stipends and access to corporate housing.
By Cate Chapman, Editor at LinkedIn News
Some Wall Street Interns Are Raking in $120 an Hour This Summer
Wages have increased for summer jobs in finance as the industry tries to get young talent in the door.
For finance jobs across the US, median intern pay jumped 19% at 16 top firms studied by Levels.fyi, which analyzes compensation data submitted by users. The bump was even higher at hedge funds and prop-trading firms, where hourly pay surged 29% year-over-year to $111, or $4,400 before taxes for a 40-hour week, according to the company.
At Citadel and Citadel Securities, the median wage for interns jumped roughly 25% to $120 an hour this year. For a standard month with 40-hour weeks that’s $19,200 before taxes. Not shockingly, the bigger paychecks got the attention of job seekers: Ken Griffin’s firms received more than 69,000 applications for their 2023 internship program, a more than 65% increase year-over-year, according to a spokesperson.
“As students have become more informed about career choices in general – and the unique opportunities our internships provide for learning, growth, and impact – they have determined that Citadel and Citadel Securities are the best places to start a career at the intersection of tech and finance,” Matt Mitro, the firm’s head of campus recruiting, said in statement.
Read more: Almost 200,000 Job Cuts in Tech Pushes New Grads to Wall Street
While big banks reduced bonuses this year, and continue to trim jobs, there is plenty of money sloshing around on Wall Street for top talent. And some finance companies are paying interns more as they try to get young people in the door at a time when many ambitious college students are disillusioned by the layoffs that have hammered the tech industry.
Boosting pay is also a way finance firms with return-to-office policies are luring talent in an era when working remotely has become a popular perk, said Zaheer Mohiuddin, the CEO of Levels.fyi.
Intern pay can vary by role, education, the type of firm and other factors. At Barclays, summer investment banking interns in the US are offered an annualized rate of $110,000, while the pay at Citigroup is $50 an hour.
Bank of America offers a median hourly rate for interns nationwide of $41 per hour while those willing to move to the Big Apple for the summer earn a premium at $46. And there’s higher pay for investment banking interns. They can be paid at an annualized rate of $110,000, according to a spokesperson.
Many finance interns get other benefits, including sign-on bonuses, living stipends and access to corporate housing, with offers today now looking similar to full-time employees. Barclays saw its application volumes increase year-over-year, according to Mei Zhou, the global head of programmatic recruiting.
“Despite recent market conditions, appetite for banking opportunities at Barclays remains strong,” said Zhou. “This is a sign, in our view, that students are prioritizing long-term opportunities and stability.”
