JPMorgan Chase has issued a strict directive to its incoming junior analysts: accepting another job offer within 18 months of joining may result in termination. The warning, reportedly delivered via a memo by global banking co-heads Filippo Gori and John Simmons, was aimed at deterring early exits, particularly to private equity firms.
The memo stated that if analysts accept another role before or shortly after joining, their employment with the firm would be terminated. Participation in the firm’s mandatory training sessions and meetings was also emphasized as a condition for continued employment.
CEO Labels Early Exits ‘Unethical’
CEO Jamie Dimon has been outspoken in his disapproval of early job-hopping, especially when recruits accept analyst roles at JPMorgan while already having future roles lined up at private equity firms. In a past address to business students, Dimon labeled such conduct as unethical and flagged concerns over potential conflicts of interest and exposure to confidential data.
“It puts us in a bad position,” Dimon said. “You are already working for somewhere else, and you’re dealing with highly confidential information from JPMorgan, and I just don’t like it.”
This firm stance reflects growing frustration among Wall Street institutions as private equity firms increasingly poach fresh talent shortly after onboarding.
Pushback Over Policy Viability
The policy has drawn criticism from banking professionals and forums like Wall Street Oasis, with some describing it as naïve and hard to enforce. A hedge fund analyst called both JPMorgan and recruiting private equity firms “misguided” for encouraging such dynamics.
Junior analysts often leave for private equity firms offering higher compensation. According to available data, associates at these firms can earn up to $300,000 (approx. ₹2.5 crore) annually, excluding bonuses. By comparison, JPMorgan associates earn between $197,000 and $289,000 (approx. ₹1.64 crore to ₹2.4 crore), as per Glassdoor.
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Wall Street’s Retention Battle Escalates
JPMorgan is not alone in facing talent drain issues. Rival firm Goldman Sachs recently countered a poaching attempt by Apollo Global Management, which tried to recruit COO John Waldron. To retain him, Goldman awarded an $80 million (approx. ₹660 crore) retention package and a board seat—highlighting the fierce competition among Wall Street firms to retain top talent.
About the author – Ayush Chaurasia is a postgraduate student passionate about cybersecurity, threat hunting, and global affairs. He explores the intersection of technology, psychology, national security, and geopolitics through insightful writing