(Bloomberg) -- Jamie Dimon had a pair of surprises when he dialed into a conference call with a group of JPMorgan Chase & Co.’s wealth advisers: He was at Windsor Castle, and oh, he’s boosting their compensation.
The largest U.S. bank is revamping its 20-year-old pay structure for J.P. Morgan Advisors, a traditional broker business that a few months ago said it aims to double headcount to about 1,000. The chief executive officer told staff the new system is coming, before a meeting with the Queen, according to people with knowledge of the conversation. The changes aim to encourage advisers to stick with the bank.
“We are making this the best place to build your practice and serve your clients for your whole career,” Dimon told participants on the call. “It’s not just hiring more advisers and updating compensation. It’s the creation of concierge services, improved products, investing in talent and marketing.”
The move comes amid pressure on Wall Street to boost pay as the pandemic spurs client demand and business, drives up profits and forces financial industry leaders to ensure their workforces aren’t vulnerable to poaching by competitors. JPMorgan said last week its expenses will probably climb in 2022 as it pays more.
The overhauled compensation structure is tied to revenue production, according to a memo sent to staff on Tuesday. It features a length-of-service award for high performers with additional revenue, to be paid in restricted stock units. Another component, also paid in RSUs, will reward advisers with high flows from retail clients.
JPMorgan absorbed the brokerage unit from Bear Stearns during the 2008 financial crisis. It was folded into a newly created unit under Kristin Lemkau in 2019. Earlier this year, JPMorgan tapped Phil Sieg, a former Bank of America Corp. executive, to lead the business.