According to market rumours, something is afoot with associate bonuses at JP Morgan.
We understand that the bank may have decided not to pay analysts who are promoted to associate the 20k associate sign-on which has become standard fare at other houses.
JP Morgan declined to comment. However, the head of graduate recruitment at a rival firm said JPM were contemplating the move a few months ago, and recruiters claim to be aware of the alleged development.
It’s not clear whether JPM is also thinking of suspending sign-on bonuses for MBAs hired into associate roles. The head of financial services careers at one European business school said she wasn’t aware of this happening so far. However, the head of graduate recruitment at one international firm said that if it hasn’t happened yet, it probably will do soon – and not just at JPMorgan.
“Banks are already contractually committed to paying sign-ons to MBAs hired this September, but everyone will be reconsidering sign-ons for 2010,” he warns.