Entering the world of investment banking, especially at a prestigious firm like Goldman Sachs, is a dream for many. The allure isn't just about the challenging work and career progression, but also the significant compensation packages, even for first-year employees. So, if you've been wondering, "How much do first-years at Goldman Sachs make?" you're in the right place!
Let's break down the compensation structure for entry-level professionals at Goldman Sachs, primarily focusing on the most common first-year roles: Analyst and, for some, Associate.
Step 1: Understanding the Landscape – Are You an Analyst or an Associate?
Before we dive into the numbers, let's clarify the typical entry points at Goldman Sachs for first-year professionals. This is crucial because the compensation significantly differs between the two roles.
Analyst: This is the most common entry-level position for recent undergraduate degree holders (typically 0-3 years of experience). Analysts form the backbone of deal teams, performing grunt work like financial modeling, preparing presentations (pitchbooks), and conducting extensive research. It's a demanding role with long hours, but it provides an unparalleled learning experience.
Associate: While some MBA graduates or individuals with several years of relevant work experience may enter directly as an Associate, it's generally considered the next step up from an Analyst. Associates take on more responsibility, manage analysts, and have more client interaction. Some "first-years" might be MBA hires entering directly at the Associate level.
So, which category do you fall into, or which one are you aspiring for? Understanding this will help you contextualize the salary figures we're about to explore.
Step 2: Deciphering the Compensation Components
When we talk about "how much first-years make," it's not just a single number. It's a combination of different components. Goldman Sachs, like most investment banks, structures compensation in a way that rewards both fixed commitment and performance.
Sub-heading 2.1: Base Salary - Your Steady Income
The base salary is the fixed portion of your compensation, paid out regularly (e.g., bi-weekly or monthly). For first-year Analysts and Associates at Goldman Sachs, base salaries are competitive and have seen increases over the past few years due to the intense competition for top talent.
For First-Year Analysts: In recent years (and factoring in trends for 2025), a first-year Analyst at Goldman Sachs in the United States can expect a base salary in the range of $110,000 to $120,000 USD. This has been a significant jump from previous years, reflecting a broader trend across investment banking to make the grueling hours more palatable.
For First-Year Associates: For those entering as first-year Associates (often with an MBA or several years of prior experience), the base salary is considerably higher. In the United States, a first-year Associate at Goldman Sachs could anticipate a base salary in the range of $150,000 to $170,000 USD.
Important Note on Location: While the figures above are typical for major financial hubs like New York, salaries can vary by location. For instance, in India, first-year Analyst salaries at Goldman Sachs tend to be in the range of ₹20 lakhs to ₹35 lakhs per year, with Associates earning more (around ₹30 lakhs to ₹40 lakhs on average, but potentially much higher depending on the specific role and performance). It's crucial to consider the cost of living and local market conditions when comparing salaries across different geographies.
Sub-heading 2.2: The Discretionary Bonus - Rewarding Performance
This is where the real upside potential of investment banking compensation lies. The bonus is a discretionary payment, typically awarded once a year (usually in December or January), and it's heavily influenced by:
Individual Performance: How well did you perform your duties? Did you exceed expectations? Were you a reliable and effective team member?
Team/Division Performance: How did your specific team (e.g., M&A, Equity Capital Markets) or division perform throughout the year? Was it a record-breaking year for deals, or was it a slower period?
Firm-Wide Performance: The overall profitability and success of Goldman Sachs globally.
Market Conditions: The general health of the economy and the investment banking industry.
For First-Year Analysts: Bonuses for first-year Analysts can range significantly, but a common range for a good performer in a typical year might be anywhere from $5,000 to $50,000+ USD. In strong market conditions, with exceptional performance, this could sometimes be even higher. Some reports indicate median bonuses for first-year analysts to be in the $50,000 - $70,000 range in recent years.
For First-Year Associates: First-year Associates generally receive substantially larger bonuses than Analysts. Depending on performance and market conditions, a bonus could range from $15,000 to $100,000+ USD.
Why the Wide Range? The discretionary nature of the bonus means it's not guaranteed and can fluctuate based on a multitude of factors. This is why "total compensation" is often a more accurate measure than just base salary.
Sub-heading 2.3: Other Potential Perks and Benefits
While not directly part of the base salary or bonus, other benefits contribute to the overall value of a first-year's compensation package:
Health and Wellness Benefits: Comprehensive medical, dental, and vision insurance.
Retirement Plans: 401(k) or similar retirement savings plans with employer contributions.
Vacation and Paid Time Off: Though often challenging to take due to demanding work schedules, these are part of the benefits.
Perks: Depending on the role and office, this might include meal allowances, transportation subsidies, gym memberships, and access to various internal training and development programs.
Relocation Assistance: For new hires moving for the job, relocation packages are often provided.
Stock Options/Restricted Stock Units (RSUs): While less common for first-year Analysts, some roles or exceptional performance might warrant a small allocation of firm stock, which vests over a period of years. This is more common for Associates and above.
Step 3: Calculating Total Compensation – The Big Picture
Total compensation is the sum of your base salary and your bonus (and any other significant monetary benefits like stock). This is the figure that truly reflects what first-years at Goldman Sachs make.
For First-Year Analysts (US):
Base Salary: ~$110,000 - $120,000
Bonus: ~$5,000 - $70,000+
Estimated Total Compensation: $115,000 - $190,000+ USD
For First-Year Associates (US):
Base Salary: ~$150,000 - $170,000
Bonus: ~$15,000 - $100,000+
Estimated Total Compensation: $165,000 - $270,000+ USD
Keep in mind: These figures are estimates based on publicly available data and industry trends. Actual compensation can vary. The high end of the bonus range is typically reserved for top performers during exceptionally good market years.
Step 4: Factors Influencing First-Year Pay
Several factors can influence the exact compensation a first-year at Goldman Sachs receives:
Division/Group: While there's a general firm-wide pay scale, some divisions (e.g., Investment Banking Division (IBD), particularly M&A or Leveraged Finance) are known for higher compensation due to the intensity of work and direct impact on revenue generation. Other divisions, like operations or compliance, might have slightly lower, though still competitive, pay.
Education: As mentioned, an MBA from a top-tier business school often qualifies individuals for an Associate-level role directly, leading to higher starting pay.
Prior Experience: Even for Analyst roles, relevant internships or prior work experience in finance can sometimes lead to a slightly better offer or positioning for a stronger bonus.
Economic Climate: In robust economic conditions with high deal flow, bonuses tend to be higher. Conversely, in downturns, bonuses can shrink significantly.
Individual Performance: This cannot be stressed enough. High performers consistently receive larger bonuses and are on a faster track for promotions and further compensation increases. Your dedication, analytical prowess, and ability to handle immense pressure directly translate into your earnings potential.
Step 5: The Lifestyle vs. The Lure of Compensation
It's essential to address the elephant in the room: the demanding lifestyle of a first-year at Goldman Sachs. While the compensation is attractive, it comes at a significant cost in terms of time and personal life.
Long Hours: Expect to work 80-100+ hours a week, especially in client-facing roles like Investment Banking. Weekends and late nights are the norm.
High Pressure: The work is complex, requires meticulous attention to detail, and often has tight deadlines. Mistakes can have significant consequences.
Steep Learning Curve: First-years are expected to absorb a vast amount of information quickly and develop critical financial skills under pressure.
Many enter these roles with the understanding that the first few years are an intense training ground, a sort of "boot camp" for a high-flying career in finance. The substantial compensation acts as a significant motivator and reward for this commitment.
Step 6: Career Progression and Future Earnings
The first year at Goldman Sachs is just the beginning. Successful first-year Analysts typically move on to become Second-Year Analysts, then Third-Year Analysts (or directly to Associate). With each promotion, there's a significant jump in both base salary and bonus potential.
Analyst to Associate: After 2-3 years, a high-performing Analyst can expect to be promoted to Associate, where total compensation can easily cross the $200,000 to $300,000+ mark in the US.
Associate to Vice President (VP): Another 3-4 years can lead to a VP role, with total compensation well into the mid-six figures, often exceeding $400,000 - $500,000+.
Beyond: Executive Director (ED) / Principal and Managing Director (MD) roles command multi-million dollar compensation packages, including substantial stock awards and profit-sharing.
The initial compensation for first-years, while impressive, pales in comparison to what can be earned further up the ladder at Goldman Sachs.
Frequently Asked Questions
Here are 10 related FAQ questions to further clarify insights into first-year compensation at Goldman Sachs:
How to define "first-year" at Goldman Sachs?
"First-year" typically refers to individuals in their initial year as a full-time Analyst, usually straight out of an undergraduate program. It can also refer to MBA graduates or experienced hires who are in their first year as an Associate.
How to differentiate between base salary and bonus?
Base salary is the fixed, guaranteed portion paid regularly, while the bonus is a discretionary, performance-based payment awarded annually, which can fluctuate significantly.
How to estimate total compensation for a first-year?
Total compensation is generally the sum of the base salary and the annual bonus. For a first-year Analyst in the US, it typically ranges from $115,000 to $190,000+ USD.
How to account for geographic differences in salary?
Salaries vary considerably by region. For instance, while US first-year Analysts might make $110K-$120K base, those in India might earn ₹20-35 lakhs (approximately $24,000-$42,000 USD at current exchange rates, but local purchasing power parity is important).
How to increase your first-year bonus at Goldman Sachs?
Strong individual performance, exceeding expectations, demonstrating exceptional analytical skills, being a reliable team player, and contributing significantly to successful deals are key factors.
How to compare Goldman Sachs' first-year pay to other investment banks?
Goldman Sachs generally pays at or near the top of the street for entry-level roles, often setting the benchmark for other bulge bracket banks. Compensation trends tend to be synchronized across major firms.
How to prepare for the demanding work hours as a first-year?
Mental resilience, strong organizational skills, time management, and a clear understanding of the demanding nature of the job are crucial. Many first-years sacrifice personal time and hobbies for their work.
How to progress from a first-year Analyst role?
Typically, strong first-year Analysts are promoted to Second-Year Analysts, and then potentially to Associates after 2-3 years, with significant increases in responsibility and compensation at each step.
How to interpret "discretionary" bonus?
"Discretionary" means the bonus is not guaranteed and its amount is at the firm's discretion, based on a variety of factors including individual, team, and firm performance, as well as broader market conditions.
How to understand the long-term earning potential after being a first-year at Goldman Sachs?
A successful stint as a first-year at Goldman Sachs opens doors to significantly higher earning potential through promotions within the firm (Associate, VP, MD) or lucrative opportunities in private equity, hedge funds, or corporate finance roles elsewhere.
