It's bonus day at JPMorgan. Not everyone is up 15%
Yesterday and today are bonus days at JPMorgan. Suggestions that the bank would pay its investment bankers up 15% and its salespeople and traders up 10% appear to have been reflected in the reality. However, not everyone at the bank got a raise.
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In technology, one senior insider claims the bonus pool in his team was down 3% and that the budget for salary increases was lower than previous years at only 3%. He says good developers were paid well, but only because others were squeezed, and that promotions were funded from the 3% salary rise, meaning many got nothing at all. Another senior technologist says the bonus pool in his area was flat but widely spread: "We didn't have much attrition last year." He added that there's been "disquiet" over salary increases.
As at Citi, JPMorgan people in middle and back office roles seem to have been squeezed to pay the front office. One salesman at the bank said members of the risk team have been complaining. "If you're close to the money, you seem to be ok."
Some at JPMorgan have yet to be told their bonuses for 2024. While US staff were informed yesterday, European staff are being told today. One investment banking managing director in London said bonuses do indeed seem to be up 15% and that most people seem happy.
JPMorgan didn't respond to a request to comment on its bonuses. Revenues from investment banking fees at the bank increased 46% year-on-year in the fourth quarter. One insider observed that this didn't appear to have made itself felt in bonuses. Compensation spending across the commercial and investment bank fell 2% year-on-year in the fourth quarter.
"The bank didn't take the monster Q4 and push money into the bonus pool," says a senior insider, in a tech role. "The general thought is too many layers of management exist and that there are too many MDs who do not talk to clients or drive trades. They are essentially operating as though they are retired and JPM does not move quickly to trim fat..."
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