Jamie Dimon, the CEO of JP Morgan Chase, in an interview last month attacked the practice of private equity firms recruiting junior investment bankers at JP Morgan Chase right as they start their positions.
“I think that’s unethical,” said Dimon. “I don’t like it. I may eliminate it regardless of what the private equity guys say.” He added: “I want patriots, not mercenaries.”
The practice of what’s known as “on-cycle recruiting,” said Dimon, wrongly compels junior bankers to decide on their next position before they have a chance to evaluate JP Morgan Chase as an employer. It also raises potential conflicts of interest for the bank. “You’re already working for somewhere else, and you’re dealing with highly confidential information from JP Morgan.”
Of course, PE firms could answer that no one is forcing junior bankers to take their offers, and they’re free to stay with JP Morgan Chase after their analyst roles end; and that the junior bankers work for JP Morgan Chase during their analyst period, so they can be held to account for disclosing confidential information. Watch starting around minute 26 of the full interview.
Correction: The original version of this post described the interview with Jamie Dimon as having taken place this month, instead of last month.