From the Wall Street Journal: “At J.P. Morgan Chase & Co., compensation for investment bankers and traders rose 13%, about three times as much as the extra revenue they produced. J.P. Morgan is paying CEO Dimon $34.5 MM, $3 MM more than he made in the previous two years. The J.P. Morgan board also awarded him a $50 MM special bonus earlier in 2021.”

WSJ

“JPMorgan also gave its younger staff a raise this week for the second time in seven months, lifting base salaries to match rivals. First-year bankers will now make $110,000 a year, up from $85,000 at the start of 2021, according to a person familiar with the matter. Associates, the next rung up the ladder and typically three years into their careers, got a $25,000 raise to $175,000 this week.”

WSJ

“Compensation as a percentage of revenue at the five biggest companies ticked up to 35% from 33%, where it had been for two years. That means their bankers, traders, engineers and portfolio managers took home an extra $9 billion that might otherwise have gone back to shareholders or been invested in new loans or technology upgrades. Jefferies Financial Group LLC gave its most-junior employees a choice of gifts including a Peloton bike.”

WSJ

Meanwhile on the crypto news… NY City Mayor Eric Adams converted his first paycheck into cryptocurrency ($BTC and ETH)

Ketamine for depression ?

One is NYSE getting the green light to direct listings, which is what Palantir Technologies will use as early as next month.

“The Council of Institutional Investors, a group of pension funds and other big money managers, asked the SEC to reject the plan…

Unlike an IPO in a direct listing there is no bank acting as a ‘stabilization agent’ to prop up the stock if it falls sharply after its debut…

Nasdaq has a similar proposal on the table.”

The Wall Street Journal, Aug. 26, 2020

Another one is the SEC expanding its definition of accredited investors.

“Previously, to qualify as accredited investors, individuals need to have a net worth of at least $1m excluding the value of their primary residence, or an annual income of at least $200k for the last two years [300k if married and filing jointly] . Now, many more people may be able to make those investments, if they can prove that they are knowledgeable enough, including employees of investments firms or governmental bodies.

SEC Commissioner Hester Pierce tweeted Wednesday: “Americans shouldn’t have to ask the SEC for permission to invest, but today’s accredited investor rule at least offers people a path to ask permission based on their education, rather than simply telling them ‘no, unless you’re rich.’”

WSJ, Aug. 26, 2020