How well does J.P. Morgan pay? Chief executive Jamie Dimon has a reputation for parsimony, but it seems that J.P. Morgan may have ditched its careful approach to banker compensation: a new study suggests Goldman paid the managing directors in its M&A and underwriting teams 20% more than Goldman Sachs did last year.
Bloomberg reports upon the study, which was undertaken by banking peer-to-peer compensation specialist Emolument. Based upon data provided by bankers themselves, Emolument said that London-based managing directors in JPMorgan's M&A and underwriting teams earned an average of £1.1m in total compensation for 2012. It said that this compared to £903k at Morgan Stanley and £873k at Goldman Sachs.
By comparison, Emolument said HSBC, SocGen and BNP Paribas paid their senior bankers a 'mere' £520k for 2012, suggesting the chasm between compensation at European and US firms is widening.
Emolument data reported on by eFinancialCareers last month suggested that when all banking business areas are taken into consideration, Nomura is one of the best payers in London. Emolument's figures are based upon data bankers have entered into the company's own system, leading to some concerns about misreporting. The figures cited by Bloomberg were based upon responses from 190 managing directors at 12 different firms.
Separately, if you want to work in trading and to (quite probably) earn less at a European bank outside the City of London, you may wish to apply for a job at Deutsche Bank. The Financial Times reports today that Deutsche Bank is doubling the size of its Brindleyplace office in Birmingham and setting up a trading floor there. By the end of this year, Deutsche will have 150 salespeople, traders and structurers in its Birmingham office, says the FT. Among others, the bank is currently advertising for FX structurers and equity researchers to work in Birmingham.
Matt Zames’ star continues to rise at JPMorgan. (Financial Times)
Stephen Hester says RBS has an 'embarrassment of cash' which no one wants to borrow. (ExpressandStar)
Alberta Investment Corporation, a Canadian private equity fund, has opened in London. (Financial News)
There’s a global shortage for compliance, risk and finance staff in banks. It’s worst in Hong Kong. (CityAm)
Net income at Lazard fell 40% in the first quarter. (Bloomberg)
As head of trading at the time of the Libor scandal at Barclays, Eric Bommensath - new co-head of the investment bank, was surely a little responsible? (SundayTimes)
Deutsche Bank lags when it comes to promoting women: it only wants to have 25% women at MD and director levels by 2018. (WSJ)
Women-owned or–managed hedge funds were most conservative when it came to performance predictions for 2013. None of them expected returns of 20% or greater. (HedgeCo)
Archbishop says bankers have been infected by a culture of entitlement and ought to start working for the common good. (Financial Times)
Hedge funds’ Ark Gala ostentatious charity party, won’t be happening. “It was all getting to feel a little bit 1788 and all that.” (Financial Times)