In an effort to reduce its costs in a difficult market, J.P. Morgan Chase & Co. is expected to cut year-end bonuses for many of its staff, including investment bankers, traders and money managers, by an average of 20%, according to a Reuters report.
Staff could see their bonuses decline by as much as 40%, partly because the banks technology mergers and acquisitions, asset management and equities operations have all had relatively dismal years. Those who work in the companys derivatives and bonds businesses, meanwhile, are likely to pocket the largest bonus checks.
Executives at the firm, which has already cut nearly 7,000 jobs in an effort to keep expenses down, will likely learn how big or small their bonuses will be this month.
Other companies are also slashing their bonuses, according to the Reuters story. The checks can climb into the tens of thousands of dollars. But some analysts expect checks for 2001 to decline by between 30% and 70%.