Wealth-Management, Private Banking, Analyst Pay

  • JPMorgan, headed up by CEO Jamie Dimon, is the biggest US bank by assets.
  • The firm wants to hire 1,500 private bank advisors. It’s also making branches a part of its wealth push. 
  • It also just raised first-year investment-bank analysts’ base pay to $100,000.
  • Visit Business Insider’s homepage for more stories.

JPMorgan is the biggest bank in the US and a bellwether for the global financial system. So when the firm’s senior-most leaders talk, Wall Street pays attention.

Private banking and wealth management are a key part of JPMorgan’s future.

In the past year, the bank has hired about 100 advisors for its private-bank division, which oversees more than $836 billion in client assets and caters to individuals worth at least $10 million. JPMorgan plans to hire as many as 1,500 new advisors over the next five years, doubling its current private-bank advisor head count, Private Bank CEO David Frame told Insider. 

The bank this month also said it’s buying UK robo-advisor Nutmeg, which oversees some $4.9 billion for around 140,000 investors. The 9-year-old startup already used portfolios with active and passively managed exchange-traded funds provided by JPMorgan Asset Management. 

JPMorgan has big plans for employees at the bank’s roughly 4,900 US branches. The bank is aiming to have all US branches staffed with licensed relationship bankers who can offer investment advice to clients by the end of the year, Insider has learned

Wealth management plans

MASPETH, NY - NOVEMBER 17: Shivani Siroya, Kristin Lemkau and Stephanie Cohen speak onstage at Girlboss Rally NYC 2018 at Knockdown Center on November 17, 2018 in Maspeth, New York. (Photo by JP Yim/Getty Images for Girlboss Rally NYC 2018)

Kristin Lemkau, center, the chief executive of JPMorgan’s US wealth management business.

JP Yim/Getty Images for Girlboss Rally NYC 2018

JPMorgan is planning to significantly expand its financial advisor force, bringing the firm closer in size and scope to its rival firms in wealth management. Over the next five to six years, the bank is considering hiring as many as 4,000 advisors to roughly double its current base, US Wealth Management Chief Executive Officer Kristin Lemkau told Business Insider this fall. 

Lemkau, who has been with the bank for over two decades and was previously its chief marketing officer, was named head of JPMorgan’s new wealth division in December 2019. Its various wealth businesses, including its self-directed wealth product, were reorganized under one umbrella.

Read more on JPMorgan’s wealth management plans:

Compensation increases for junior bankers

JPMorgan has increased first-year investment-bank analysts’ base pay to $100,000, Insider has learned.

Across Wall Street, young bankers have been overworked dealing with a heavy load of deal work over the last year, often done in isolation while working from home. JPMorgan was one of the few this spring that didn’t shower its junior bankers with tens of thousands of dollars in one-time bonuses, special perks like Peloton bikes, base-pay bumps, or all-expense-paid vacations to combat burnout.

Instead, JPMorgan became one of the earliest banks to ask employees to return to the office on a full-time basis, along with Goldman Sachs.

JPMorgan’s investment-banking coheads said this spring that they had recently hired 65 analysts and 22 associates and that there were plans to hire 100 more junior bankers and support staff. Overall, investment banks are still stretched thin when it came to junior talent, with some fast-tracking lateral interviews or looking for more career switchers to fill roles. 

Recent leadership shakeups and new hires

The bank on May 18 promoted two women to co-lead the firm’s massive consumer and community banking business: consumer-lending chief Marianne Lake and chief financial officer Jennifer Piepszak. The pair will take over running the division from Gordon Smith, who’s retiring this year from his roles as co-president and co-chief operating officer of the firm and CEO of CCB. 

The moves shine a light on succession planning at the firm, as Lake and Piepszak are two of the top contenders to take over for CEO Jamie Dimon when he eventually retires. Smith had also been rumored to be in the running for the top job before announcing his retirement.

Read more: 

collage (1)

Melissa Goldman and James Reid


JPMorgan in May named James Reid and Melissa Goldman to be CIOs of two newly-formed groups to help modernize tech for employees.

Reid is CIO of the firm’s employee experience and corporate technology organization, which is modernizing the tech employees use internally. And Goldman, also the firm’s chief data officer, is CIO of the finance, risk, data, and controls (FRDC) technology group.

JPMorgan also hired another ex-Marcus executive, Sherry Ann Mohan, chief financial officer for business banking, CNBC first reported. Mohan, who will start August, was previously at Goldman Sachs for 15 years and most recently the CFO of the consumer business, including the Marcus brand and Apple Card..

More on people move here:

Source link