eFinancialCareers

Both JPMorgan and Bear Stearns investment bankers are bracing themselves for swathing cuts, but Bear’s IT staff have apparently been offered double their salary to stay.

A senior source at JPMorgan has told us that they are desperate to hold on to Bear Stearns technology staff for the next six to 12 months in order to integrate the systems of the two banks and to close down those that aren’t required any more.

“It’s a retention thing,” said the source. “We’re offering them double their current compensation until the new systems are in place.”

The news comes as it transpires that JPMorgan could cut 4,000 of its own investment banking staff, while replacing 2,000 roles with Bear Stearns personnel, according to Bloomberg. Some 1,000 positions are thought likely to go at JPMorgan in London, while 7,700 of Bear’s 14,000 staff are set to be axed.

But has the uncertainty since the merger led many IT staff to jump before they’re pushed? Stephen Feline, senior consultant at headhunters the Kaizen Partnership, thinks not: “So far most of the IT staff we placed in Bear Stearns prior to the merger have been quite pleased with the scenario – they’ve moved up from a second-tier bank to a bulge bracket and are being treated well. There’s not been the exodus you might expect.”

Another headhunter thinks that both JPMorgan and Bear Stearns staff have been open to offers: “We’d heard rumours of staff being offered double their salary, guaranteed bonuses and retainers, but a lot of people were sceptical until the offer was on the table. We’ve been talking to IT staff, traders and quants, who are all concerned with the situation. Managers are currently identifying the best people and making their recommendations to JPMorgan on who to keep and who to let go.”