JPMorgan, Goldman reward bankers with large bonuses
Stock markets has outperformed in the year due to stimulus measures which has led to high trading activities and deal-making, benefitting investment banks
•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.
Bankers in M&A advisory and ECM division of Goldman were given an average of 40% increase in bonuses.
The bank’ 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.