JPM Sets Aside $471,779 Run-Rated Compensation For 2009, 60% Less Than Goldman
JPMorgan disclosed today that it has provisioned $8.785 billion for compensation for the 9 months ended September 30. Based on the 24,828 employees currently working for Jamie Dimon, this implies an accrual of $353,834 per employee (this excludes the accrual to be set aside in Q4). The number is a 34% increase over the prior year period, and represents 38% of revenues for the first nine months of the year. Run rated, the median JPM employee should expect to make $471,779.
As a reminder, Goldman Sachs had provisioned a compensation number of $386,429 for the first half alone, or $772,858 for the full year. This number is roughly 60% higher than JPM's compensation accrual. More information will be made available when Goldman files their record Q3 earnings shortly (keep a close eye out on $100MM+ trading days). Of course, the distribution of compensation is far from normal, with several of the top producers pocketing a substantial portion of the compensation. Nonetheless, in what is shaping up to be a record year for Wall Street compensation, in case of another repeat of last year's market collapse, the public anger will be rightfully focused on those institutions that continue abusing the fact that they only exist, and are about to pocket insane amounts of money, courtesy only of taxpayer generosity and the Fed's complicity in raising the market to its current levels.