JP Morgan to Axe New Hires Who Quit Within 18 Months After Dimon’s Stern Warning

According to a number of media stories, JP Morgan has warned new hires that they may lose their jobs if they accept positions at other organisations in the future.

The CEO of the bank claimed that it was "unethical" to accept a position at JP Morgan with the intention of leaving for private equity within a few years. Co-heads of global banking at JP Morgan sent a harsh warning in an email addressing new hires right out of graduate school.

 According to the email, if an employee accepts a job offer from another company before joining JP Morgan or within the first 18 months of working there, they will receive notice, and their employment with the company would terminate.

Financial Giant Wants Full Focus and Stronger Commitment from Employees

With this action, the company has made it abundantly evident that joining the financial behemoth demands all of an employee's attention and dedication. The memo stressed that meetings, training sessions, and other commitments are required in a stern tone aimed at younger staff.

Termination may occur if any of these are missed. Only US-based candidates received the email, which warned them that they would lose their jobs if they accepted another offer, according to a media source.

The fact that candidates frequently land future positions before beginning a current one seems to be a characteristically American problem.

In September 2024, Dimon addressed a group of undergraduate business school students, saying, "I know a lot of you work at JPMorgan; you take a job at a private equity shop before you even start with us." Since I didn't discuss character, I'm going to say something a little different, all right. That, in my opinion, is unethical and the most significant aspect of people's character. I dislike it.

Naturally, the comment and the action that followed run the danger of upsetting the Private Equity Group, which makes up a sizable portion of JPMorgan's business. The two men also write that avoiding any conflicts of interest is essential to preserving the faith and confidence that JP Morgan's clients place in the firm and that failing to complete any portion of the training programme could result in termination.

Poaching the New of the Financial Sector

JPMorgan is not the sole Wall Street titan that is currently facing recruitment attempts from private equity firms. Recently, Goldman Sachs had to thwart a well-publicised attempt to hire one of its senior executives.

Earlier this year, the David Solomon-led company gave Chief Operating Officer John Waldron an $80 million "golden handcuffs" package and a board seat in order to keep him on board. Marc Rowan's Apollo Global Management had been pursuing Waldron for a significant position.

Many believe that the retention bonus, which will completely vest over five years, is an attempt to retain the 55-year-old at Goldman, where he is thought to be Solomon's most likely successor as CEO.