And investment bankers got their 2012 pay cut, while firm asset managers didn't.
JPMorgan paid investment bankers and traders about 3% less in 2012 as shaky economies in the U.S. and Europe put a damper on deals, said two people with knowledge of the firm’s compensation.
Portfolio managers and other executives in asset management received an average 6% increase in salary and bonuses, according to two other people briefed on pay at the New York-based firm.
Bloomberg reports that senior investment bankers and traders had braced for steeper reductions exceeding 10%, one person said, after global deals slid 13% to $2.67 trillion in 2012. Net income at JPMorgan’s investment bank for the first nine months of 2012, before it was merged with the corporate bank and treasury services divisions, dropped 15% to $5.2bn.
The cuts pale next to those inflicted on JPMorgan Chief Executive Officer Jamie Dimon and on some peers at rival banks. Dimon’s pay was halved after the bank suffered its worst-ever trading loss in the so-called London Whale episode. Top employees at UBS AG, Switzerland’s biggest lender, will take a 7% reduction in their bonus pool and get paid with bonds whose value could be wiped out.
Senior executives at JPMorgan bore a heavier share of bonus cuts in the investment bank to insulate junior and mid-level staff from harsher reductions, said one of the people, who requested anonymity because pay discussions are private. Joe Evangelisti, a company spokesman, said the firm had no comment. JPMorgan paid the approximately 26,000 employees in its investment bank an average of $314,980 for the 12 months ended September 30th.
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