JPMorgan compensation to increase, analysts claim

17 January 2011

JPMorgan is likely to increase the amount of total compensation during 2010, analysts have claimed.

According to reports, compensation is expected to be either flat or rise up to ten per cent while individual compensation is forecast to decline.

Analysts expect the forecast for JPMorgan to be confirmed when the financial results for the last quarter are released in the forthcoming week.

Figures quoted by the Wall Street Journal (WSJ) showed that $10 billion is to be set aside to cover compensation at the bank, which is up by 7.5 per cent on the $9.3 billion reserved for the same use in 2009.

Alan Johnson, a compensation consultant with Johnson Associates, told the news provider: “This is not one of those years that's black and white, this is a grey kind of year. Some firms did better and some did worse."

Further statistics quoted by the WSJ showed that JPMorgan is expected to pay an average sum of $378,500 per employee for 2010 - the amount is lower than the $380,000 provided per staff member in 2009.

By Jim Ottewill

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