JPMorgan Said to Cut Two Dozen Equities Traders, Salespeople
Traders Magazine Online News, February 15, 2013
JPMorgan Chase & Co. cut about two dozen U.S. equities traders and sales staff after that unit’s revenue declined last year, according to two people with knowledge of the reductions.
Some senior employees voluntarily left after their bonuses shrank more than those of their fixed-income counterparts amid a push to more closely align pay with revenue, said one of the people, who asked not to be identified because the decisions weren’t public.
The fixed-income unit generated $15.4 billion in revenue last year, up 4 percent from 2011, while revenue from the equities division, run by Tim Throsby, slipped 1.8 percent to $4.4 billion.
See: Big Banks See 7.1% Drop in Trading Revenues
About three managing directors and 18 executive directors, including Andrew Crofton and Julian Plant, were cut, according to one of the people. Kevin Smart, a vice president in the unit, also lost his job, two people said. Equities derivatives traders and sales people also were affected, the people said.
Jennifer Zuccarelli, a spokeswoman for the New York-based company, said she couldn’t comment on the departures. Plant also declined to comment, while Crofton and Smart didn’t immediately respond to messages.
Throsby, who previously ran equity derivatives sales and trading, was promoted in September to run the entire unit as part of a broader management shakeup. Chief Executive Officer Jamie Dimon, 56, ousted top managers and shuffled others around after traders in the chief investment office lost more than $6.2 billion on a bad derivatives bet in the first three quarters of last year.
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