Compensation of Second-Year Goldman Sachs Analysts: Base Salary and Performance-Based Bonuses

As of 2023, a second-year analyst at Goldman Sachs typically earns a base salary of around $100,000 to $120,000 per year. This figure is subject to variation based on several factors, including the division, location, and the analyst's individual performance.

Base Salary

The base salary for a second-year analyst at Goldman Sachs is generally in the range of $100,000 to $120,000 annually. This amount can vary slightly depending on the particular division within the bank and the skills and experience of the analyst. For instance, a second-year analyst in a high-performing team may receive a slightly higher base salary compared to an analyst in a division facing more challenges.

Performance-Based Bonuses

In addition to the base salary, analysts can also look forward to receiving performance-based bonuses. These bonuses are calculated as a percentage of the base salary and can range from 10% to 30% based on their individual and firm performance. This means that the total compensation for a second-year analyst can range from approximately $110,000 to $160,000 or more, depending on these bonus percentages and other factors such as team performance.

Compensation Variations

Compensation can vary by division, location, and the analyst's performance. For instance, an analyst in New York City may receive a higher base salary and bonus than an analyst in a less-expensive city like Los Angeles. Similarly, analysts in more competitive divisions, such as Investment Banking and Debt Capital Markets, may have higher compensation packages compared to those in less competitive divisions like Treasury and Corporate Finance.

Summary and Comparison

One way to understand the overall progression of an analyst's compensation is through a general base salary progression:

First Year: $85,000 Second Year: $90,000 to $95,000 Third Year: $95,000 to $100,000

It's important to note that the bonus component will vary, keeping the total compensation within the 100-200k mark. This bonus range is influenced by the performance of both the individual and the team.

Conclusion

The role of a second-year analyst at Goldman Sachs is not only about financial rewards but also about commitment to a career path. The first year acts as a trial period, while the second year is a defining point that can significantly influence an analyst's future in the firm. Money remains a crucial factor, but the importance of performance, team dynamics, and personal growth should not be overlooked. Salaries and bonuses can shape an analyst's experience and future within the company, making the second year a pivotal stage in their career.