JP Morgan thaws salaries
(10 November 2009 – USA) JPMorgan Chase, director, Jon Donnelly, has sent out an internal memo defrosting the salary freeze put in place last year on employees earning over US$60,000 (A$64,000).
The bank, which recently returned the US$25 billion (A$27.2 billion) it received from the governments bailout fund, is also looking to reinstate the US employees’ 401(K) pension plan contributions to those who are eligible.
JP Morgan, which is the second largest bank in the United States, sent the memo that indicated their eligible employees would also benefit from a special award of US$500 in compensation.
The freeze was put in place last year as financial markets fell and Lehman Brothers dissolved.
The debate is still hot over the large bonuses bankers receive and the decision to reinstate them comes as part of the bank’s end of year performance and compensation review.
Mr Donnelly, CEO, said in the memo, that it is possible that regulatory rules will change compensation standards and the bank will, of course, adhere to all regulatory standards.
However, the bank will continue to be committed to being highly competitive and paying for performance, Mr Donnelly added.
JP Morgan, which is the second largest bank in the United States, sent the memo that indicated their eligible employees would also benefit from a special award of US$500 in compensation.
The freeze was put in place last year as financial markets fell and Lehman Brothers dissolved.
The debate is still hot over the large bonuses bankers receive and the decision to reinstate them comes as part of the bank’s end of year performance and compensation review.
Mr Donnelly, CEO, said in the memo, that it is possible that regulatory rules will change compensation standards and the bank will, of course, adhere to all regulatory standards.
However, the bank will continue to be committed to being highly competitive and paying for performance, Mr Donnelly added.
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