Bloomberg reports that JPMorgan’s bonus pool for the corporate and investment bank may shrink only 2% this year as the firm finishes performance reviews, three executives with direct knowledge of the process said.
The amount in the pool won’t be set until after the company closes out 2012, said the people, who requested anonymity because the talks are private. Year-end bonuses at New York-based JPMorgan are determined primarily by the performance of the company, followed by the division and individual employees, the executives said.
Financial Professionals across Wall Street are facing pay cuts or losing their jobs as revenue growth wanes and shareholders demand higher returns. Citigroup Inc. (C), the third-biggest U.S. bank, plans to shrink bonuses by as much as 10 percent, excluding top performers, at the trading and investment-banking division, people with direct knowledge of the decisions said last week.
'If the JPM bonus pool only shrinks 2% this year, then I’d say that those guys, and women, are the luckiest folks on earth', said Nancy Bush, an analyst and contributing editor at SNL Financial LC, a bank-research firm in Charlottesville, Virginia. 'I expected much more shrinkage'.
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