JPMorgan's technology interns will only be around for five weeks this year - from July 6th to August 7th, but they're still being paid for a full 10 week internship. Even better, they're being paid far more than technology interns in the past.
JPM's London technology interns are now on prorated salaries of £48k ($60k) according to bank insiders, up from £40k previously. JPMorgan declined to comment on the increase, but we understand that it actually happened last year, and went unnoticed at the time.
Rising salaries for technology interns match rising salaries for JPMorgan's full time technology graduate hires as banks compete to attract technology talent. JPMorgan spent $12 billion on technology, communications and expense equipment last year, up from $11.5bn in 2018.
The increase in salaries for junior technologists means JPMorgan's tech staff are now paid salaries nearly on a par with its junior investment bankers, who receive first year salaries of around £50k according to reports from headhunters. However, front office bankers are likely to receive higher overall compensation by virtue of their bonuses, which are usually around 70% of salary. By comparison, technologists typically receive bonuses of 20% or less.
JPMorgan's salary rise for technologists comes after Goldman Sachs increased total compensation for first year technologists with Masters qualifications to £100k in January 2019.
Banks are competing heavily with technology companies for the best graduate talent. JPMorgan's new salary means interns are on £4k a month. However, secretive electronic trading firms like Jane Street are rumoured to pay far more than this, at £6k a month or even higher.
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