JPMorgan to Boost Bonus Pool for Stock Traders, Bankers

(Bloomberg) -- JPMorgan Chase & Co. plans to increase annual bonuses at its corporate and investment bank, as a growing number of Wall Street firms share proceeds from a busy year, according to a person briefed on the decision.

Average percentage increases will be in the mid-single digits, with equities traders and investment bankers probably getting more than that, the person said. The division accounts for about a third of the firm's revenue.

Compensation consultant Johnson Associates Inc. had predicted in November that Wall Street equities traders will reap the biggest bonus increases, as their counterparts on fixed-income desks potentially get less. Bankers who advise on mergers and acquisitions were expected to see their payouts cut by as much as 5 percent, according to Johnson. Yet, people familiar with Morgan Stanley's plans said last month it was planning increases for both traders and bankers.

Read more: Morgan Stanley is said to boost its bonus pool

JPMorgan's stock traders generated $5.571 billion of revenue in last year's first nine months, 22 percent more than a year earlier, according to data compiled by Bloomberg. Revenue from investment banking increased by 2.5 percent.

Dealmakers are bracing for a slowdown in 2019, predicting that stormy equity markets, political uncertainty and weakening economic conditions could cool a five-year boom in transactions.

JPMorgan reports fourth-quarter earnings on Tuesday. Reuters reported earlier Thursday that the bank, which also operates a vast retail network, may increase its total bonus pool by about 3 percent.

To contact the reporter on this story: Michelle F. Davis in New York at mdavis194@bloomberg.net

To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, David Scheer, Dan Reichl

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