JPMorgan’s bankers are on track for a pretty brutal pay cut
JPMorgan might have done pretty well across the board for Q2, but no one seems to have told the Corporate & Investment Bank (CIB).
The headline figures in the CIB are pretty stark in comparison to the all-conquering retail bank. Compared to the first quarter of this year, investment banking revenue was down -6%, dragged down hard by falling advisory revenues, which declined by 29%. Capital markets climbing 13% (35% up for ECM, 5% up for DCM) were a valiant but ultimately poor seawall trying to hold back a deluge. Fixed income and equities trading were down 16% combined (-20% and -9% when separated, respectively).
Compensation was down as a result; CIB staff were paid an average of $46k per head, compared to $55k per head last quarter, and $50k for the second quarter of 2022. The numbers were (a bit) better when looked at for half-years however, with compensation of $101k per head compared to $108k last year.
Although the fall in compensation was due to the bank putting less money aside for pay, it wasn’t helped by the CIB’s ever-expanding headcount; it added around 500 people over the last quarter, and over 5,000 in the last 12 months.
JPMorgan’s hesitance to cut jobs is making its people less well-off, it seems. The only cut it has announced recently (across its 300,000-strong workforce) is a 500-person tech cull. That doesn’t really compare to its rivals; Goldman Sachs, who cut over 3,000 people, and Morgan Stanley, who cut around the same.
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