It happens. After raising the salaries of first-year analysts in the investment banking division, banks are also raising their salaries in the region where talent is at its height: Software developers are finally getting some love.
After years of bitter complaining, tech experts on the forum website Blind say banks are starting to raise compensation to compete with hedge funds and tech companies that usually pay much more. Some people on Blind cite offers of $375,000 for JPMorgan’s vice presidents (Vice Presidents in Software Engineering); Others suggest that Goldman Sachs pay $300,000+ to software engineers on “revenue-generating teams” like Marcus, Goldman’s retail bank.
Goldman Sachs did not respond to our request to verify the claims and JPMorgan declined to comment. However, with respect to JPMorgan, there is at least evidence of pockets of highly paid software engineers.
Payroll history provided to US H1B visa holders shows that JPMorgan is paying exceptionally high salaries to software engineers in Redwood City, California, where it has a technology hub after buying fintech startup WePay in 2017 to facilitate payments for small-business clients. H1B visa holders who join JPMorgan in software engineering positions at the vice president level in the Redwood City office get a salary of $317,000; senior engineering managers on $300,000; Associates range from $260,000 to $279,000.
These are just salaries. Rewards will be paid at the top.
Redwood City may be an exception as JPMorgan competes fiercely for engineering talent in California. However, there are signs of rising wages in New York City, too. JPMorgan offered a CEO-level software engineering manager in New York $235,000 in June, according to H1B visa records. The vice president was offered 203 thousand dollars.
As the chart below shows, not everyone gets that much. But software developer salaries are definitely going up. The last time we looked (in October 2019), the H1B rate for a JPMorgan software engineer in Redwood’s office was $150,000, and the Vice President in New York was charging a similar amount. Levels fyi shows that the average total compensation for JPMorgan associates in recent years has been $123,000, but these new New York City associates are joining packages ranging from $120,000 to $180,000 as the numbers grow toward the higher end.
Developer salary increases have caught on in London, too. A graduate developer hired next year at JPMorgan will join salaries of £70,000 (US$93,000), compared to £60,000 in 2021. The current mid-ranking rate for senior front-office developers in London banks is now around £225,000. Sterling ($300,000) (including salary and bonus) according to a developer at a European home.
Of course, developers in banks still get paid less than front-office workers. While JPMorgan pays its New York managers in software engineering salaries of $235,000, it pays executives in business salaries of $350,000.
However, this may not be the latest salary hike. A senior technology insider at JPMorgan tells us that the talent market is “too tight” and that banks are struggling more than ever to hire and retain software engineers in the face of FAANG firms and start-ups. “It’s the result of COVID,” he says. “There is a growing demand for technology and electronic products.”
Photo by Martin Sanchez on Unsplash
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