JP Morgan CFO Marianne Lake has said that the firm may slash pay and cut jobs in its investment banking division if trading revenue fails to rebound as expected.
Speaking at an investor conference in New York, Lake said the bank could cut compensation if it continues to post lower revenue as JPMorgan and other banks did during the first quarter.
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While she didn’t give a time frame, Ms. Lake described the revenue pressures as "cyclical."
Lake said: "Over time, we should expect to see these cyclical head winds abate and get replaced with tail winds. "It is possible that reductions may be required in response to market evolution, but it will take time to play out."
Lake added that there is too much capacity in the fixed-income area, where bonds and other contracts tied to rates and currencies trade, according to Bloomberg.
JPMorgan’s compensation will be based on a number of factors, including risk-adjusted returns, performance and competition.
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