Bank of America Corp. is allowing junior investment bankers to climb its ranks more quickly, as Wall Street seeks to keep top young talent from being poached.
The lender is shortening its analyst program to two years from three, promoting those with good performance to the title of associate one year earlier than it would previously, Christian Meissner, head of corporate and investment banking, said in a memo to staff. The changes will take effect with the class hired last year, while those who started in 2016 can get earlier promotions on a case-by-case basis.
Goldman Sachs Group Inc. made a similar move about two years ago. Once Wall Street firms hire young employees, the biggest threats to retaining them typically come from their buy-side clients, such as investment funds, that start recruitment efforts within months to pick up talent fresh from banks’ training programs.
“We are committed to providing a competitive and successful junior-banker experience and are confident this enhancement will encourage long-term careers at the firm,” Meissner wrote.