The Evening Standard said earlier this month that City bankers at Citigroup, JP Morgan and Goldman are most likely to be the big winners in the bonus stakes this time around. Well, that raised a few eyebrows, as neither Citigroup nor JP Morgan have reputations of being overly-generous on comp.
JP Morgan Chase boss Jamie Dimon, of course, earned his spurs at Citigroup. Since bolting Bank One (where he was also CEO) onto JP Morgan Chase, Dimon has been slashing at costs.
As Financial News says, 'over the last two and a half years, Dimon has ordered the closure of the bank's 16 gymnasiums, cut off more than 50,000 unused phone lines, stopped hiring executive training coaches at hundreds of dollars an hour, sold more than four million square feet of unused office space and ruled that investment bankers should not be given BlackBerrys and mobile phones - a decision he was later persuaded to reverse'.
Now, against this background, the bank has acquired a kind of Wal-Mart image (stack 'em high & sell 'em cheap). And the fact that there were lots of JPMorgan bankers said to have been going around last year complaining that their bonuses weren't up to scratch, (bonuses were said to have been the smallest payouts among the top 7 US firms - a claim the bank denies), hasn't helped.
But the times over at JP Morgan Chase may be a-changing. Dimon's latest mantra is apparently doing 'first-class business in a first-class way'. And JPMorgan bankers may, it seems, be upgraded from budget bonuses - and actually get a decent payout this time around'.
Sources - Financial News, bankersball.com, dealbreaker.com
Have something to tell us about this article?