JP Morgan's London investment bankers are set to pocket an average of £233,000 each as the US bank thumbs its its nose at the industry's critics to increase the money it pays them despite falling profits.
This year 37 per cent of its revenues will go to pay staff salaries and bonuses, up from 33 per cent last year. The total pot is $9.7bn from $9.3bn. That was despite a fall in 2010 profits to $6.6bn from $6.9bn.
Critics of investment banks argue that the interests of top staff are put ahead even of shareholders. JP Morgan will add fuel to that particularly fire. David Hillman, a spokesman for the Robin Hood Tax campaign, said: "JP Morgan's outrageous bonuses are a slap in the face to ordinary people. To put this in perspective, £200,000 is enough to save nine teachers' jobs."
JP Morgan enjoyed a good 2010 with net income of $17.4bn on revenues of $104.8bn, nearly 50 per up on 2009.