In a memo dated June 4, JPMorgan’s global banking co-heads, Filippo Gori and Doug Petno, told incoming analysts that accepting a position with another company before joining the firm — or within their first 18 months — would result in the end of their employment, New York Post reports.
The internal letter, which surfaced on the Instagram account Litquidity, reflects mounting pressure across Wall Street to retain top early-career talent amid fierce competition from private equity firms and hedge funds.
“To succeed in the investment banking analyst programme, your full attention and participation are essential,” the memo states.
It also notes that missing any part of the firm’s training could lead to dismissal. The letter emphasizes the importance of avoiding conflicts of interest, especially when handling sensitive client information.
While JPMorgan did not explicitly name private equity firms, the policy appears aimed at addressing the well-documented trend of newly recruited analysts accepting offers from such firms — sometimes even before starting at the bank.
JPMorgan CEO Jamie Dimon has previously criticized this practice, calling it “unethical” during a 2023 appearance at Georgetown University.
“You are already working for somewhere else, and you’re dealing with highly confidential information from JPMorgan, and I just don’t like it,” Dimon said.
The memo also included a measure aimed at improving analyst retention: JPMorgan will shorten the typical path to promotion by six months, allowing analysts to reach associate level in 2.5 years instead of three.
Wall Street firms have long contended with talent poaching by private equity firms offering higher compensation packages. Research from industry portals like Glassdoor and Wall Street Oasis shows private equity associates can earn up to $300,000 annually, often matched with equal or greater bonuses. By comparison, JPMorgan associate salaries typically range from $197,000 to $289,000, excluding bonuses.
Despite the new policy, questions remain about how strictly it can be enforced. Some critics, including anonymous employees on financial forums, described the policy as “trust-based” and difficult to monitor effectively. One hedge fund analyst commented that both banks and private equity firms are pushing unsustainable recruiting practices.
Other firms are also acting to retain talent. Earlier this year, Goldman Sachs reportedly offered Chief Operating Officer John Waldron an $80 million retention package to fend off recruitment efforts from Apollo Global Management.
