Wells Fargo’s Investment Bank Intern Pay Policy
Wells Fargo, a prominent financial institution, has been making significant strides in its investment banking sector. According to reports by the Wall Street Journal and Financial Times, the bank has experienced unprecedented success in recent years. With the hiring of numerous managing directors and plans for further expansion, Wells Fargo’s investment banking division is on a growth trajectory.
However, despite its overall success, Wells Fargo has recently implemented a new pay policy for its US interns in the investment banking department. While the bank has not officially commented on this matter, incoming interns have reported that they will receive a fixed rate of pay for up to 40 hours per week, with an additional hourly rate for any overtime worked. The supplementary rate for overtime is set at 50% of the regular pay.
Under this new policy, Wells Fargo’s investment banking interns can expect to earn $2.1k for a standard 40-hour workweek, equivalent to $52 per hour. For any hours worked beyond the standard 40, interns will receive a maximum of $26 per extra hour. It is important to note that this policy does not apply in California.
Reports suggest that Goldman Sachs, another major player in the financial industry, has a similar pay policy in place. While this has not been officially confirmed, it appears that investment banks are exploring ways to manage pay rates following increases in analyst salaries and intern pay during the pandemic.
This adjustment has not been well-received by interns, who may see a significant reduction in their potential earnings for overtime work. Previously, interns working 70 hours a week could have earned an extra $1.6k, but under the new policy, they would only receive $780 for the same hours.
Conclusion
Wells Fargo’s decision to implement a new pay policy for its investment banking interns reflects a broader trend in the industry. While many banks raised salaries and intern pay during the pandemic, there is now a shift towards managing pay rates more effectively. This move has sparked discontent among interns who may feel that their earning potential has been compromised.
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