[[JPM]] is busting the bank to retain top producers at [[BSC]], while telling the pikers to go fuck themselves and run, not walk, to Merrill.
For brokers generating over $500,000 in revenue, Dimon and Co. will pay them a 100% up front bonus, which includes 25% of JP Morgan stock. And, those lucky fuckers will get additional bonuses of 50% cash and 50% stock, based upon production numbers, over the next three years.
For lesser producers, in the $250k-500k bracket, they will receive a 50% bonus, split evenly between cash and stock.
For losers making less than $250k, they get nothing. Moreover, they probably get to hand in their books, to bigger producing brokers, and look for a new job.
Essentially, a broker making $1 million in gross commissions stands to make over $4 million in bonuses, over the next three years. Anyone in the industry knows that is an incredible deal, for basically doing nothing but go to work.
For JP Morgan: I believe it is a terrible deal, as they try to fend off shark-like recruiters from taking Bear Stearns’ best brokers.
Basically, JPM is taking on one fuck of a money loser.
NOTE: One of my recruiter friends said other firms are willing to payout more than 200% in upfront bonuses, for top producing Bear brokers. This should be interesting.