Bear Stearns reps get retention deal
Recruiters think JPMorgan's package might not be enough to keep Bear's largest producers from jumping ship.
JPMorgan Chase & Co. has offered Bear Stearns brokers a retention package worth 100% of production upfront, and another growth-based bonus after three years.
Bear reps producing $500,000 or more qualify for the upfront award, paid 75% in cash, 25% in stock.
It’s a seven-year deal, so if brokers leave before then, they would have to pay back a pro-rata share of the bonus, recruiters say.
After three years, JPMorgan will average annual production looking back over that period and pay another bonus equal to the growth in production.
The back-end piece would be paid half in cash and half in stock.
A JPMorgan spokesman declined to comment.
Recruiters thought the package still might not be enough to keep Bear’s largest producers from leaving.
Many Bear reps have unique businesses and a high-end clientele, and will look at factors other than just money in evaluating a firm, recruiters say.
“I think [the package] is going to keep some” Bear brokers, said recruiter Mindy Diamond, president of Diamond Consultants LLC in Chester, N.J.
“But I think many — especially the highly productive brokers — will jump ship.”
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