Jamie Dimon may be the last man standing but JPMorgan was the first among the big banks to report fourth-quarter earnings, announcing a record $9.3 billion payday for its investment-banking employees.
The total breaks down to an average of approximately $379,000 per employee for the firm's investment bankers, sales staff and traders. The hefty payout sets the stage for Goldman Sachs and Morgan Stanleyto follow suit with their own jaw-dropping numbers expected to be reported next week. A study conducted by The Wall Street Journalfound that the top 38 financial companies are on pace to award $145 billion in total compensation and benefits for 2009, an 18% improvement from the previous year.
JPMorgan CFO Michael Cavanagh said that despite the increase in pay overall, its investment bank still reduced the percentage of revenue that it reserved for pay, to 33%, from 62% for 2008, and historical averages of about 44%, according to Reuters. Its investment bank had one of its strongest years.
Somehow, we predict, that might not be the number that will be the center of attention.