No data to display.

JPMorgan, Goldman reward bankers with large bonuses

By Shubhangi on Jan 21, 2022 | 03:31 AM IST

jassy.png

Goldman Sachs increased its annual bonus pool by 40% to 50%

JPMorgan increased its annual bonus pool by 30% to 40%

Top U.S. banks Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) informed its staff of large bonuses for 2021, after a stellar year due to record level deal-making.

Goldman Sachs increased its annual bonus pool for top-performing investment bankers by 40% to 50%, while JPMorgan increased it by 30% to 40%, reported Reuters.

Stock markets has outperformed in the year due to stimulus measures which has led to high trading activities and deal-making, benefitting investment banks.

Also Read: American, United expect profit in March; warn of increased costs

Bankers in M&A advisory and ECM division of Goldman were given an average of 40% increase in bonuses.

The bank’s partners were rewarded special stock bonuses, reported Reuters, amounting to multimillion-dollar packages.

Non-interest expenses

Non-interest expenses have been high in the quarter, affecting profit growth of the banks.

Last week, JPMorgan reported 11% jump in non-interest expenses in the fourth quarter, while Goldman reported 33% rise in compensation expenses last year, largely due to higher staff compensation.

Also Read: McDonald's expands testing of 'McPlant' burger created with Beyond Meat

JPMorgan CEO Jamie Dimon said the bank will pay the employees appropriately and would not mind fewer margins.

"We will be competitive and pay and if that squeezes margin a little bit for shareholders, so be it," he told analysts.

Goldman Sachs Chief Financial Officer Denis Coleman told analysts, "Our philosophy remains to pay for performance, and we are committed to rewarding top talent in a competitive labor environment."

Picture Credits: Reuters

Stock View