JPMorgan raises salaries of some software engineers to $300,000
That happens. After raising wages by first-year analysts in the investment banking divisionbanks are also raising salaries in the area where talent is most scarce: software developers are finally loved.
After years of bitter complaints, technologists on the forum site Blind say banks have started to increase compensation to compete with hedge funds and tech companies who usually pay a lot more. Some people on Blind cite offers of $375,000 for JPMorgan VPs (VP Software Engineering); others suggest that Goldman Sachs is paying more than $300,000 for software engineers in “revenue-generating teams” like Marcus, Goldman’s retail bank.
Goldman Sachs did not respond to our request to validate the claims, and JPMorgan declined to comment. However, when it comes to JPMorgan, there is at least some evidence that there are pockets of highly paid software engineers.
Record of salaries offered to US H1B visa holders shows JPMorgan paying exceptionally high salaries to its software engineers in Redwood City, California, where it has a tech hub after buying a fintech start-up WePay in 2017 to facilitate payments to small businesses. H1B visa holders joining JPMorgan in VP-level software engineering jobs at the Redwood City office receive salaries of $317,000; senior engineering executives get $300,000; associates are between $260,000 and $279,000.
These are just salaries. Bonuses will be paid additionally.
Redwood City could be an exception as JPMorgan competes to attract engineering talent to California. However, there are also signs of higher salaries in New York. –A New York software engineering manager at the executive director level was offered a $235,000 salary by JPMorgan in June, H1B visa records show. A vice president was offered $203,000.
As the chart below shows, not everyone gets that much. But salaries for software developers are definitely increasing. The last time we looked (in October 2019), the going H1B rate for a JPMorgan software engineer in the Redwood office was $150,000, and VPs in New York received a similar amount. Levels for info shows the average total compensation for JPMorgan associates in recent years was $123,000, but new associates in New York are joining packages of $120,000 to $180,000 with increasingly skewed numbers upscale.
Developer pay rises have also spread to London. Graduate developers hired next year at JPMorgan will join on a salary of £70 ($93,000), up from £60,000 in 2021 (including salary and bonus) according to a European house promoter.
Naturally, developers in banks are always paid less than people in the front-office. While JPMorgan pays its New York executive directors in software engineering salaries of $235,000, it pays executive directors in business salaries of $350,000.
This may not be the last of the pay rises, however. A senior JPMorgan technology executive tells us the talent market is “very tight” and banks are having more trouble recruiting and retaining software engineers than ever before in the face of FAANG Companies and start-ups. “It’s the result of COVID,” he says. “There is an increased demand for technology and electronic products.”
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