JPMorgan Chase & Co plans to increase annual bonuses at its corporate and investment bank, as a growing number of Wall Street firms share proceeds from a busy year, according to a person briefed on the decision.
Average percentage increases will be in the mid-single digits, with equities traders and investment bankers probably getting more than that, the person said. The division accounts for about a third of the firm’s revenue.
Compensation consultant Johnson Associates Inc had predicted in November that Wall Street equities traders will reap the biggest bonus increases as their counterparts on fixed-income desks potentially get less. Bankers who advise on mergers and acquisitions were expected to see their payouts cut by as much as 5 percent, according to Mr Johnson. Yet, people familiar with Morgan Stanley’s plans said last month it was planning increases for both traders and bankers.
JPMorgan's stock traders generated $5.571 billion of revenue in last year's first nine months, 22 per cent more than a year earlier, according to data compiled by Bloomberg. Revenue from investment banking increased by 2.5 per cent.
Dealmakers are bracing for a slowdown in 2019, predicting that stormy equity markets, political uncertainty and weakening economic conditions could cool a five-year boom in transactions.
JPMorgan reports fourth-quarter earnings on Tuesday. Reuters reported earlier Thursday that the bank, which also operates a vast retail network, may increase its total bonus pool by about 3 per cent.