Latest news with #JohnSimmons
Daily Mail
2 days ago
- Business
- Daily Mail
JPMorgan will now fire junior workers over common practice
JPMorgan has warned junior employees that they will be fired if they accept future-dated job offers in the first year and a half of working for the bank. America's largest bank has begun cracking down on a common practice which sees graduate analysts accepting job offers up to two years in advance of their start date. Young bankers often begin on an analyst training program while setting up a high-paying private equity role as their next job hop. Private equity firms are happy for young talent to complete an analyst training program before bringing their skills and contacts with them. The practice has irked bankers and JPMorgan's threats have hardened the battle lines between the bank and the firms circling its talent pool. 'If you accept a position with another company before joining us or within your first 18 months, you will be provided notice and your employment with the firm will end,' global banking co-heads Filippo Gori and John Simmons wrote in a leaked email sent to new recruits. JPMorgan CEO Jamie Dimon has previously criticized the process, arguing it raises conflicts of interest as employees may be called to work on projects involving their future employers. 'I know a lot of you work at JPMorgan, you take a job at a private equity shop before you even start with us,' Dimon told business students at a talk in September. I think that's unethical. I don't like it,' Dimon told the students. 'It puts us in a bad position, and it puts us in a conflicted position,' he added. 'You are already working for somewhere else, and you're dealing with highly confidential information from JPMorgan, and I just don't like it.' The bank has a strict policy requiring its employees to disclose future-dated job offers and acceptances to their manager. Bosses have warned that this policy could become even stricter with disclosure leading to the bank 'reconsidering the status' of their employment. The letter sent on June 4 also told new recruits that their future job searches must be done on their own time. 'To succeed in the investment banking analyst programme, your full attention and participation are essential,' it warned. But there was a sweetener thrown into the otherwise ominous note, which Fortune understands was only sent to new employees in the US. Trainees will now be given the chance to be promoted to analyst after two and a half years rather than the customary three. Dimon has also previously insisted on an ironclad stance on remote work. While speaking at Stanford University's Graduate School of Business in March, Dimon said he's 'had enough' of the now-common workplace practice and that it simply 'doesn't work' in his business. He got onto the controversial topic after a graduate student asked a question regarding leaked, expletive-loaded remarks from a company town hall about the finance firm's end of hybrid work. Under Dimon's leadership JPMorgan has grown to be the world's biggest and most powerful bank with $4 trillion. Its prominent retail and investment arms makes it one of the most closely watched institutions on Wall Street.
Entrepreneur
4 days ago
- Business
- Entrepreneur
JPMorgan Will Fire Bankers Who Accept Future-Dated Offers
According to a leaked memo, JPMorgan is telling junior analysts that they will be fired if they accept another job in advance. JPMorgan Chase, the largest bank in the U.S. with $3.9 trillion in assets, is cracking down on junior employees accepting other positions while working at the firm, according to a leaked email. Private equity firms offer candidates jobs up to two years in advance of a start date. This extended timeline means that recent graduates often seek out high-paying private equity jobs before (or while) working as investment banking analysts at companies like JPMorgan. Now, JPMorgan is warning incoming U.S. analysts that they will be fired if they accept a future-dated job offer within 18 months of joining the firm. Related: JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate The leaked email, sent by JPMorgan's co-heads of global banking, Filippo Gori and John Simmons, to newly recruited analysts last week, reads: "If you accept a position with another company before joining us or within your first 18 months, you will be provided notice and your employment with the firm will end." The new policy is intended to remove any "potential conflicts of interest" and maintain the trust of the bank's clients, the email explains. The memo also states that analysts can be fired for missing onboarding sessions and summer training. The email added that, in return, JPMorgan would reduce the time it takes to get to the associate level, from three years to two and a half years, to promote promising talent more quickly. Related: JPMorgan CEO Jamie Dimon Just Made a Big Announcement About His Retirement Timeline: 'I Love What I Do' JPMorgan CEO Jamie Dimon, 69, addressed the problem of losing talent to private equity late last year, calling the practice "unethical." "I know a lot of you work at JPMorgan, you take a job at a private equity shop before you even start with us," Dimon said at a talk at Georgetown University in September. "I think that's unethical. I don't like it." Dimon said that the practice of job hopping to private equity puts JPMorgan "in a conflicted position" because junior analysts are already promised to another firm while dealing with confidential information at JPMorgan. JPMorgan CEO Jamie Dimon. Photographer: Qilai Shen/Bloomberg via Getty Images Private equity typically pays more compared to investment banking. Associates at private equity firms make a median of $236,000 per year, including base pay and bonuses, according to Glassdoor data. In comparison, first-year analysts at JPMorgan make $100,000 per year in base salary, with pay rising to $105,000 for second-year analysts and $110,000 for third-year staff. Investment banking hours are also longer than private equity hours, though JPMorgan began restricting junior investment bankers' working hours to 80 hours a week in September. Private equity firms still require less office time, an average of 60 to 70 hours per week. The average U.S. workweek was 34.3 hours in May.
Business Insider
05-06-2025
- Business
- Business Insider
Jamie Dimon just made good on his promise to crack down on bankers with hush-hush private equity jobs
JPMorgan is warning junior bankers against taking future-dated jobs with buyout firms — or even sneaking out of job training to take interviews. On Wednesday, JPMorgan Chase's top investment banking brass sent a memo to incoming first-year IB analysts warning them against participating in the private equity industry's annual recruiting ritual. This whirlwind affair is known as "on-cycle recruiting" and promises young bankers lucrative jobs at the end of their investment banking analyst programs, which often last two or three years. In the memo, John Simmons and Filippo Gori, co-heads of global banking, admonished analysts who accept "future-dated job offer" or "a position with another company before joining us" within their first 18 months of employment, saying they will be terminated if discovered. "You will be provided notice and your employment with the firm will end," the executives wrote. They said such offers could constitute a conflict for junior bankers working on transactions for PE sponsors who could also be their future employers. This year's memo appears to be an escalation of a long-simmering personnel issue important to the bank's high-profile CEO, Jamie Dimon. "I think that's unethical. I don't like it, and I may eliminate it regardless of what the private-equity guys say," Dimon told college students at Georgetown University last year. Last year, the firm warned incoming junior bankers against the practice, but stopped short of saying it would terminate those who participated. This year's memo even vowed to terminate junior bankers who dare sneak out of job training to interview with private equity firms, as many did in 2023. "To succeed in the Investment Banking Analyst Program, your full attention and participation are essential," wrote Simmons and Gori. "Attendance at all training sessions, meetings and obligations is required. Missing any part of the training program may lead to removal from the program and termination," they said. The memo was first reported by ExecSum, a newsletter offshoot of the popular Instagram account Litquidity. A JPMorgan spokesperson confirmed its authenticity to BI. As Business Insider has previously reported, private equity's annual recruiting of junior bankers is a frenetic affair that often starts without warning. Young bankers can be asked to drop everything to interview or miss out — resulting in middle-of-the-night interviews or missed vacations and proving a nagging source of disruption for bank bosses. Dimon has railed against PE recruiting and its impact on his staff. "I think it's wrong to put you in the position," he said in the fall, adding: "You have to kind of decide the next career move before you have a chance to even decide what the company is like." It remains to be seen how this new rule could impact the future of buyside recruiting. The industry insiders who spoke to BI expressed skepticism over the bank's ability to enforce the new rule. "I imagine while some junior bankers will be scared off, many will continue to take the risk," Anthony Keizner, a partner at the headhunting firm Odyssey Search Partners, told BI on Thursday. "They always saw banking as a stepping stone, and won't want to be put off starting the next phase of their career." A former junior banker who now works in private equity agreed. "Analysts are going to recruit regardless," this person said, adding that young bankers will simply "shut their mouths about" it. In what appears to be an acknowledge of the competitive pressures young people in the industry face, the bank said in the memo that it would shorten its analyst program from three years to two and a half, offering juniors "quicker advancement opportunities within the firm." "All the mega funds already fill spots within the first six months," said the private equity professional, who asked to remain anonymous to protect her job. "They're not going to wait for JPM analysts."
