JPMorgan Chase & Co intends to freeze salaries for employees from the rank of vice president and above as the bonuses for some traders is expected to rise to as much as 20 per cent.
These plans have been made amidst the Bank’s efforts to deal with the next year’s budgets and the pandemic-induced disruptions in the form of low interest rates and higher costs for loan losses in the face of rising trading revenues.
For traders, their incentive comes in the form of bonuses that increase when market revenue rises. The multinational bank’s bonus pools this year are relatively lower and senior officers would face a salary freeze. The payout expectations for traders, is subject to changes in December.
Earlier in November, the company paid $ 250 million for risk management and other control failings in its asset and wealth management business. This was the second penalty for the bank in less than two months after the Office of the Comptroller of the Currency (OCC) found that JPMorgan’s risk management practices were deficient and lacked sufficient controls to avoid conflicts of interest.
The previous round of fines was in September itself with a total of $ 920 million, to settle federal US market manipulation probes into its trading of metal futures and treasury securities.
JPMorgan has one of the world’s largest and most complex asset and wealth-management businesses, with $ 1.3 trillion in fiduciary assets and $27.8 trillion of non-fiduciary custody assets. The Bank also provides a number of investment strategies to its fiduciary clients through a variety of investment vehicles.