A career at Goldman Sachs is often seen as the pinnacle of a young professional's ambition in the world of finance. The name itself carries a legacy of prestige, influence, and, of course, significant financial reward. For aspiring analysts, the first question is often the most direct: "What can I expect to earn?" While the answer is complex, the potential is undeniable. A first-year analyst at Goldman Sachs can anticipate a total compensation package that often soars well into the six figures, making it one of the most lucrative entry-level positions in any industry.
This article will break down the salary structure for an analyst at Goldman Sachs, explore the key factors that dictate earnings, and provide a clear outlook on this demanding yet highly rewarding career path.
What Does an Analyst at Goldman Sachs Do?
Before diving into the numbers, it's crucial to understand the role. An "Analyst" at Goldman Sachs is typically an entry-level position held by recent university graduates for two to three years. These individuals are the engine room of the firm's various divisions, particularly in the high-stakes Investment Banking Division (IBD).
Their core responsibilities are intense and foundational to the firm's operations:
- Financial Modeling: Building complex spreadsheets to forecast a company's performance, value a business, or analyze the financial impact of a merger or acquisition (M&A).
- Valuation Analysis: Using methodologies like Discounted Cash Flow (DCF), comparable company analysis, and precedent transactions to determine a company's worth.
- Creating Presentations: Developing "pitch books" and other presentation materials for senior bankers to use in meetings with clients.
- Market Research: Conducting in-depth research on industries, markets, and specific companies to support transactions and strategic decisions.
- Supporting Deals: Assisting senior team members with the execution of live deals, including initial public offerings (IPOs), debt issuances, and M&A transactions.
The role is famous for its steep learning curve and long hours, but it provides an unparalleled education in finance and corporate strategy.
Average Analyst Salary at Goldman Sachs
Compensation for an analyst at a top-tier investment bank like Goldman Sachs is famously composed of two main parts: a base salary and a significant year-end performance bonus.
- Base Salary: For a first-year analyst in a major financial hub like New York City, the base salary has recently been standardized across Wall Street. As of 2023-2024, you can expect a base salary of approximately $110,000 to $125,000.
- Performance Bonus: The bonus is highly variable and depends on both individual and firm-wide performance. For a first-year analyst, this can range from $50,000 to over $90,000.
- Total Compensation: Combining these figures, a first-year analyst at Goldman Sachs can expect a total compensation package ranging from $160,000 to $215,000+.
According to data from Glassdoor, the estimated total pay for an Analyst at Goldman Sachs is around $148,565 per year, with a base salary averaging $112,028. It's important to note that user-reported data can vary, and top-performing analysts in strong market years often exceed these averages. Reports from industry-specific sources like Wall Street Oasis frequently show top-bucket first-year analysts clearing the $200,000 mark.
Key Factors That Influence Salary
While the headline numbers are impressive, several factors can significantly influence an analyst's actual take-home pay.
### Level of Education
A bachelor's degree from a top-tier university is the standard requirement for an analyst role. While Goldman Sachs hires from a range of disciplines, degrees in Finance, Economics, Mathematics, and other quantitative fields are highly favored. A high GPA and prestigious internships are critical differentiators.
It's important to distinguish the undergraduate "Analyst" role from the post-MBA "Associate" role. Professionals who pursue a Master of Business Administration (MBA) typically re-enter the firm at the Associate level, which comes with a substantially higher base salary (often $175,000+) and bonus potential.
### Years of Experience
Within the analyst program itself, compensation grows quickly. Analysts are typically promoted annually for their first two to three years.
- Analyst 1: The entry-level salary as outlined above.
- Analyst 2: A base salary increase to approximately $125,000 - $150,000, with a significantly larger bonus potential. Total compensation can approach or exceed $250,000.
- Analyst 3 (or promotion to Associate): Those who stay for a third year see another jump in base and bonus, or they may be promoted directly to the Associate level, placing them on a new, higher-paying track.
### Geographic Location
Where you work matters. Goldman Sachs adjusts its salaries based on the cost of living and market competition in different financial centers.
- Top-Tier Hubs (New York, London, Hong Kong): These locations offer the highest compensation packages to attract talent in highly competitive, high-cost-of-living environments.
- Other Major Offices (Salt Lake City, Dallas, Bengaluru): While still very competitive, salaries in these locations may be moderately lower than in New York. However, the lower cost of living can often mean a higher disposable income. For example, a base salary in Salt Lake City might be 10-15% lower than in NYC, but the cost of housing is drastically different.
### Company Type
While this article focuses on Goldman Sachs, it's helpful to see how its compensation compares to other firms.
- Bulge Bracket Banks (e.g., Goldman Sachs, Morgan Stanley, J.P. Morgan): These firms are at the top of the pay scale and generally move in lockstep on base salaries for junior talent.
- Elite Boutique Banks (e.g., Evercore, Centerview, Lazard): These specialized firms often match or even exceed the compensation at bulge bracket banks to compete for the best talent.
- Corporate Finance (e.g., at a Fortune 500 company): An analyst role in a company's internal finance department will typically have a lower salary but offer a significantly better work-life balance.
### Area of Specialization
Not all analysts at Goldman Sachs are in the Investment Banking Division. The division you work in is one of the biggest determinants of your bonus.
- Investment Banking Division (IBD): Traditionally the highest-paying division due to its direct link to massive, revenue-generating deals.
- Global Markets (Sales & Trading): Compensation is highly dependent on individual performance ("P&L" or profit and loss). Top traders can earn massive bonuses, but the median can be slightly more variable than in IBD.
- Asset & Wealth Management: Manages investments for institutions and high-net-worth individuals. Compensation is excellent but typically structured with a lower bonus ceiling than IBD in the early years.
- Back Office & Corporate Divisions (e.g., Operations, Compliance, Technology): These roles are essential to the firm's function. While their salaries are very strong compared to other industries, they do not include the large, deal-driven bonuses seen in front-office roles.
Job Outlook
The finance industry is cyclical, but the demand for sharp, analytical talent is perennial. According to the U.S. Bureau of Labor Statistics (BLS), employment for Financial Analysts is projected to grow 8 percent from 2022 to 2032, which is much faster than the average for all occupations.
However, it's crucial to contextualize this. While the overall profession is growing, competition for a coveted analyst spot at Goldman Sachs is among the most intense in the world, with acceptance rates often lower than those of Ivy League universities. Success requires exceptional academic performance, relevant internship experience, and stellar networking and interviewing skills.
Conclusion
A career as an analyst at Goldman Sachs represents a unique opportunity to launch a career at the highest level of global finance. The financial rewards are a primary motivator, with first-year total compensation packages regularly exceeding $175,000. This earning potential grows rapidly with each year of experience.
For prospective students and professionals considering this path, here are the key takeaways:
- Compensation is a Package: Focus on total compensation (base + bonus), not just the base salary.
- Performance is Paramount: Your bonus, the largest variable in your pay, is tied directly to your performance and the firm's success.
- Division and Location Matter: Your earnings will be heavily influenced by whether you are in a front-office role like Investment Banking and where you are geographically located.
- It's More Than Money: While the salary is a significant draw, the experience, training, and network gained during an analyst-stint at Goldman Sachs are invaluable assets that pay dividends for an entire career, whether you stay in finance or pivot to another industry.
The path is demanding, but for those with the drive and talent, the rewards—both financial and professional—are unparalleled.