JPMorgan’s Corp/PE Unit Sees 25% Compensation Drop

JPMorgan Chase reported increased profits today but headcount and compensation at the bank’s corporate/PE unit both dropped.

Today, JPMorgan Chase reported that third-quarter profits surged 23% to $4.42 billion, or $1.01 a share, compared with $3.55 billion or 82 cents a share for the same time period in 2009. The bank said it added 16,000 workers in the past year, bringing its ranks to almost 237,000 globally.

JPMorgan’s corporate/PE unit, which includes its PE arm One Equity Partners, posted $348 million in third-quarter net income, down 73% from the roughly $1.3 billion posted for the same time period in 2009. Much of the $348 million profit came from PE, which generated $344 million in net income, a JPMorgan earnings statement said.

Along with One Equity, the corporate/PE  unit includes other corporate business segments like treasury and the chief investment office.

Despite the increase in profits, JPMorgan’s corporate/PE unit suffered some declines, according to FINS, the finance career site of the Wall Street Journal.

Compensation expenses for the corporate/PE unit dropped 25% to $574 million in the third quarter, from $768 million for the same time period in 2009. Headcount for the unit in third quarter was 19,756, off 5% from 20,747 in 2009, according to JPMorgan’s third quarter earnings supplement.

It’s not clear if the declines affected One Equity, which has about 40 investment professionals and manages about $8 billion of investments and commitments for JPMorgan, according to its web site.

A JPMorgan spokesman declined comment.

This is an evolving story. I will update if I get further information or clarity from JPMorgan.