JPMorgan Chase & Co.’s Vis Raghavan said bonuses for investment bankers will fall after a “pretty anemic year.”
(Bloomberg) — JPMorgan Chase & Co.’s Vis Raghavan said bonuses for investment bankers will fall after a “pretty anemic year.”
“All banks pay for performance, so if the performance isn’t there, the compensation isn’t going to be there,” the firm’s global investment-banking co-head who also oversees Europe, the Middle East and Africa said in a Bloomberg Television interview at Davos on Wednesday.
Markets desks had a mixed year, Raghavan added, with strong performances in commodities, rates and macro, as well as volatility-based equity trades at a time when demand for cash equities was more muted.
Last week, the lender reported investment banking revenue of $1.4 billion in the fourth quarter, down 57% year-on-year. That mirrors firms across Wall Street, leaving dealmakers bracing for an underwhelming bonus season.
Credit Suisse Group AG Chairman Axel Lehmann warned on Tuesday employees should brace for lower awards after a “horrifying year” for the Swiss lender, while JPMorgan, Bank of America Corp. and Citigroup Inc. are all weighing plans to cut bonus pools for their investment bankers by as much as 30%, Bloomberg has reported.
Read More: JPMorgan, BofA, Citi Slash Banker Bonuses as Talent War Ends
Raghavan also said JPMorgan was now in a “steady state” with regard to its European footprint, with moves and restructuring related to Brexit now complete. He said the UK needed to find a way to recover from the economic impact of its vote to leave the European Union and encourage higher workforce participation, but the country remains an attractive investment proposition.
The executive also said most JPMorgan workers have returned to the office, part of Wall Street’s growing trend to roll back flexible working.
“We have most of our people back in the office,” he said, noting every organization must find the best balance. “There is a spring in people’s steps, I think it’s really good having people back.”
(Adds markets performance, context on bonus season from third paragraph.)
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