JPMorgan Chase has told its incoming graduate analysts that if they accept a future-dated job offer within their first 18 months at the bank, they will be fired. The new policy, outlined in a letter sent to recruits set to join JPMorgan’s US analyst training programme this summer, marks a sharp escalation in Wall Street’s battle with private equity firms over junior banking talent, the Financial Times reported.
“If you accept a position with another company before joining us or within your first 18 months, you will be provided notice and your employment with the firm will end,” wrote JPMorgan’s global banking co-heads Filippo Gori and Doug Petno in the letter.
Private equity recruitment in the crosshairs
The bank didn’t name private equity firms directly but its warning targets the so-called “on-cycle” recruitment process, through which buyout firms offer jobs to graduates up to two years ahead of their start dates, with the expectation they first complete a stint in investment banking. That practice has become a source of growing frustration for banks, which see their incoming analysts poached before they can fully contribute.
JPMorgan’s move pits it against some of its most valuable clients in private equity and follows public criticism from CEO Jamie Dimon, who has called the early recruiting tactics unethical and said they create conflicts of interest when analysts are asked to work on deals involving their future employers.
JPMorgan adopts the toughest stance on Wall Street
The new policy cements JPMorgan’s reputation as the most aggressive among its peers in tackling the trend. While other banks have warned incoming analysts to disclose future job offers, JPMorgan had previously stopped short of banning them outright. Now, accepting such an offer will lead to termination.
The letter also reminded analysts that job searches must be done on personal time and warned that full participation in training sessions and mandatory events is required — with absences risking dismissal.
Private equity versus Wall Street: an ongoing battle
Banks have struggled to contain the rapid encroachment of private equity firms into graduate recruitment, which often begins before new analysts even start their investment banking roles. The practice forces banks to invest in training junior staff who leave within months or even weeks of starting.
Incoming JPMorgan analysts, who start training in July, are arriving in New York this month as the latest round of private equity recruitment ramps up. While the bank hopes to encourage longer tenure with a faster path to promotion — analysts can now be promoted to associate after two and a half years, rather than three — its message to new hires is clear: full loyalty is expected.
The memo ended on a positive note despite the tough warnings: “We are thrilled to have you join our team. Welcome aboard!”
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