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This is the second bit of compensation news we’ve gotten today, and it’s not good for JP Morgan bankers.Bloomberg reports that JP Morgan’s bonus pool for corporate and investment bankers will drop as much as 2% this year.
The amount in the pool won’t be set until after the company closes out 2012 and the decline could narrow, said the people, who requested anonymity because the talks are private. Year-end bonuses at New York-based JPMorgan, the biggest U.S. bank by assets, are determined primarily by the performance of the company, followed by the division and individual employees, the executives said.
An executive also told Bloomberg that this shrinkage is an attempt avoid layoffs.
The first bit of compensation news we heard was not as grim. Morgan Stanley announced that it would be restructuring the way it pays brokers to reward them for growing assets and loans rather than for bringing in revenue.
The idea, says Reuters, is to “to grow fee-based accounts and increase loans to its advisory clients.”