Salary of a Goldman Sachs Analyst

Regarding the salary of a Goldman Sachs analyst, it is projected that an Analyst at Goldman Sachs receives a total annual compensation of $110,206. This number indicates the median, which is the middle of the ranges derived using our in-house developed algorithm for estimating total compensation and based on the salaries submitted by our users. The annual salary is expected to be $82,983 on average. The additional yearly compensation is anticipated to be $27,222.  

Additional compensation may come in the form of a monetary bonus, commission, tips, or a share of the profits. The values that are represented by the “Most Likely Range” are those that can be found between the 25th and 75th percentiles of all of the pay data that is available for this role.  

The news is great for first-year analysts at Goldman Sachs. Following several months of consideration within the company, Goldman Sachs made the decision in 2021 to follow the lead of other big investment banks and raise the starting salaries of their entry-level workers.  

Since a slide deck containing the results of a self-selected survey of 13 junior bankers at Goldman Sachs who claimed to be working 98-hour weeks regularly and sleeping an average of 5 hours a night circulated online in February of this year, the investment bank has been the subject of intense scrutiny regarding the issue of salaries.

Therefore, now the starting salary of a Goldman Sachs analyst for first-year analysts will increase from $85,000 to $110,000, the starting salary for second-year analysts will increase from $95,000 to $125,000, and the starting salary for first-year associates will increase from $125,000 to $150,000.

What does a Goldman Sachs Analyst Do?

In order to locate investments that will be profitable, financial analysts need to process a wide variety of information. The Entry Level Financial Analyst is responsible for providing analytical support for initiatives that are relevant to prospective business and financial matters. In this role, you will be responsible for aiding with the preparation, coordination, and documentation of initiatives including financial analysis. Assisting in financial forecasting and the reconciliation of internal accounts are two of the responsibilities of an Entry Level Financial Analyst. Assists in the production of projections and the analysis of trends in manufacturing, sales, and finance, as well as general business circumstances and other areas associated with these tasks. A person in this position usually answers to the direction of a manager or supervisor. Working in a supporting capacity as an Entry Level Financial Analyst, one works on projects or issues that are only moderately difficult. The work is managed very carefully. In most cases, an individual needs 0-2 years of expertise in a relevant field in order to work as an entry-level financial analyst.

Salary of Goldman Sachs Analyst: Education

A bachelor’s degree is required for the position of Entry Level Financial Analyst. In fact, the majority of entry-level occupations for financial analysts require a bachelor’s degree; business is a popular choice for those interested in pursuing this degree. There are some companies that give hiring preferences to job applicants who have earned a master’s degree.  

Skills Needed

A Goldman Sachs analyst can have a successful career if they have strong quantitative skills, expert problem-solving abilities, proficiency in the use of logic, along with above-average communication skills. This is true regardless of the level of education the individual possesses. Below are some more details on skills:

• Competence in analysis. In order to locate investments that will be profitable, financial analysts are required to analyze a variety of data.
• Abilities in the art of communication Clients need to be able to understand the rationale behind the recommendations made by financial analysts.
• Computer skills. In order to effectively analyze financial data and trends, build portfolios, and make projections, financial analysts need to be proficient in the use of relevant software.
• Decision-making skills. In order to provide recommendations regarding whether a security should be bought, held, or sold, financial analysts need to arrive at conclusions.
• Detail oriented. When evaluating a potential investment, financial analysts need to pay close attention because even relatively minor concerns may have significant bearing on the company’s overall health.
• Math skills. When attempting to estimate the value of financial securities, financial analysts turn to mathematics.

Are there Certifications or Licenses Needed?

Certification is highly recommended by employers, and having it might potentially boost career opportunities. A good illustration of this would be the Chartered Financial Analyst (CFA) certification that is offered by the CFA Institute. A bachelor’s degree, several years of relevant professional experience, and successful completion of a series of tests are all requirements for earning the Chartered Financial Analyst (CFA) designation. They also have the option of obtaining certification in their particular area of expertise.

The Financial Business Regulatory Authority, also known as FINRA, is the primary institution responsible for issuing licenses in the securities industry. Selling financial products often necessitates possession of a license; this need may apply to certain occupations. Because the majority of these licenses require sponsorship from an employer, businesses do not anticipate new hires to already possess these licenses prior to beginning work for them.

Salary of Goldman Sachs Analyst: Advancement

The first step in becoming a financial analyst is normally to focus on a certain type of investment. As they gain more experience, they may be promoted to the role of portfolio manager and given the responsibility of selecting the many investments that will make up a company’s portfolio. They also have the potential to become fund managers, overseeing substantial investment portfolios on behalf of individual shareholders. It is possible that an analyst’s prospects of moving to one of these roles would be improved by having a master’s degree in either finance or business administration.