JPMorgan woos Bear private client brokers with big bonus offers
The stricken investment bank’s brokers would receive a bonus of up to 100% of the total revenue, if they can bring in more than $500,000 in revenues
JPMorgan is offering Bear Stearns' best brokers annual bonuses of more than $500,000 (€320,298) in an effort to prevent an exodus of talent as a result of its planned takeover of the stricken investment bank, according to a report in the Financial Times.
Sources said JPMorgan, which on Monday raised its all-stock bid to buy Bear from $2 to $10 per share, told the firm's 400-plus private client brokers that those bringing in more than $500,000 in revenues would receive a bonus of up to 100% of the total revenue they generated.
Three-quarters of the bonuses will be paid in cash and a quarter in JPMorgan shares. Brokers generating between $250,000 and $500,000 a year will receive 50% of their total, half in cash and half in stock, while brokers bringing in less than $250,000 will not get a bonus.
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