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Looks like JPMorgan bankers are going to get paid

As one of the only banks on Wall Street to scrape a profit for 2008, JPMorgan has reason to feel proud of itself. And even though its investment bank didn’t exactly contribute to that achievement, with a $1.2bn loss, early indications are that its investment banking bonuses won’t be bad at all.

Staff at JPMorgan are due to be told their numbers this week. MDs have already been warned that their bonuses stand to fall by 30-50%, but the bank’s fourth quarter results suggest the average payout will diminish by considerably less.

Compensation expenditure at the investment bank was $7.7bn in 2008, down just 3% on 2007. Combined with rising headcount following the Bear Stearns acquisition, this led to a 13% reduction in average compensation per head, to $276k.

By comparison, at Goldman and Morgan Stanley compensation per head fell 54% and 52% respectively.

For the first time (ever?), investment bankers at JPMorgan appear to have earned more than their counterparts at Morgan Stanley last year – the average salary and bonus at the house of Mack was just $262k.

Comments (13)

  1. bonus compensation will be based on market rates, as everything… and it will be down 30-50% for top performers, down 50-80% for middle performers, and zero for the 25% worst performers

  2. GS and MS employees received bonuses this year ???? How is it remotely possible for a bank that received financial bailout aid from the government to be paying out any form of bonuses to any of its employees ?… in reward for what exactly ?… the average base salary at GS or MS is already 3-5 times that of the average Joe on the street if not more… presumably these are the situations where the word “paradox” reaches whole new boundaries… Isn’t it nice to know that when that GS MD shows up at the Porsche dealership in a couple weeks to upgrade his little toy he will be spending Joe’s money that works at McDonalds… the beauty of capitalism !!!

  3. dont believe a word of it.compared to most we did pretty decently this year.but like other banks it will all go to those with the guarantees and then to those who probably lost their/our dough but have high profiles !!
    but then isnt that always the way

  4. Of course JP bonuses will be down… Surprised they are even getting any considering the number of people they have laid off.

  5. good or bad we find out tomorrow.

  6. We just got our letters here in Europe..Don’t know about getting paid well mate. Au contraire its been a pretty poor bonus year for most of us unfortunately

  7. you know what else rhymes with paid? :-)

  8. one leads to another

  9. Does anyone know how the LatAm guys fared bonus-wise?

  10. just got mine and I can tell you was not good at all even though I made 5 times more money than last yr.., so go figure

  11. JP rules ok…….for 2008 anyway………..come join us at JP :)))))))

  12. got mine and it is laughable. first full year at JPM and manager told me I was a top performer, but it’s just the way the markets are. So either analysts/assocs aren’t getting paid, or I’m being totally screwed by my boss (would not be at all surprised by the latter).

  13. you probably been screwed.
    i didn’t do well myself.

    but my colleague and friend got more than 50%, and he didn’t do a full year. and that’s in back-office technology!

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