JPMorgan Chase & Co. (JPM:US)’s corporate and investment bank cut employee compensation costs 3 percent in 2012 to $11.3 billion as the division generated 1 percent more revenue.
The expense was enough to give each of the division’s 52,151 employees $216,928, according to figures posted today on the New York-based company’s website. In 2011, the unit set aside $11.7 billion to pay traders, dealmakers and other personnel, or $217,600 for each of the 53,557 people on staff.
JPMorgan combined its investment bank with the firm’s corporate bank and treasury and securities-services units last year, and placed Mike Cavanagh and Daniel Pinto in charge of the division. The fourth quarter was the first that the bank reported the combined results of the entire group, which has more than double the employees than the investment bank alone.
Pay costs for the year were 33 percent of revenue at the corporate and investment bank, down from 34 percent in 2011.
The amount set aside for compensation includes salaries, bonuses, benefits and the cost of deferred pay from previous years. Figures for average pay don’t represent what individuals actually receive and are calculated by dividing the total compensation expense by the number of employees.
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