Discover the Average Salary at Goldman Sachs: How Much Do They Really Pay?

What Is the Typical Salary at Goldman Sachs?

Goldman Sachs (GS) has a longstanding reputation for rewarding its workforce generously. In 2021, the average compensation for a Goldman Sachs employee was around $404,000. However, this figure includes high-level executive pay, which significantly skews the average and doesn’t accurately reflect the earnings of non-executive staff.

Recently, Goldman Sachs has increased salaries to attract talent from booming tech industries and startups. For instance, in 2021, first-year analysts at GS began with a salary of $110,000—a nearly 30% rise from the previous $85,000 starting pay. Second-year analysts saw their salaries jump from $95,000 to $125,000, while first-year associates' pay increased from $125,000 to $150,000.

Since Goldman Sachs’ reported employee numbers include temporary workers and consultants, who typically earn less than full-time staff, many full-time employees likely earn more than the average, while others earn less.

Key Insights

• Goldman Sachs significantly raised salaries in 2021, influenced by increased revenue and inflation.
• Even entry-level positions pay well, with summer interns earning 50% more than New York City’s median household income.
• The investment banking sector is experiencing talent shifts as top employees transition to tech, prompting banks to boost compensation to retain skilled professionals.

Understanding Salary Structures at Goldman Sachs

Salaries in investment banking depend heavily on experience and performance, with senior bankers earning substantially more than those just starting. High performers receive generous rewards. While analysts often earn over $100,000 yearly, managing directors can make upwards of $20 million.

Goldman Sachs employees in the New York City area earn well above the city’s median household income, which was $63,998 in 2019.

Although banker salaries were a hot topic during the 2007/2008 financial crisis, discussions have cooled recently as investors increasingly use digital tools like robo-advisors or manage their own investments from home, reducing the spotlight on investment banks.

What’s the Average Salary of a Goldman Sachs Employee?

It’s important to note that the average salary figure of $404,000 is heavily influenced by executive compensation packages and does not represent the average pay for typical employees. Executive salaries significantly elevate this average.

How Much Do Goldman Sachs Interns Earn?

Internship pay at Goldman Sachs varies by office location and department. Interns receive a prorated annual salary based on their time spent, typically during an 8- to 10-week summer period aligned with university schedules. Intern salaries generally range between $85,000 and $100,000 annually.

Do Goldman Sachs Employees Earn More Than Industry Averages?

Direct comparisons across the investment banking industry are challenging due to the diversity of roles, from analysts to risk managers. However, investment banking is merit-based, so banks must offer competitive compensation packages to attract and retain top talent.

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