Jamie Dimon Slams Early-Career Private Equity Moves, Saying It ‘Puts Us in a Bad Position’
Jamie Dimon, CEO of JPMorgan Chase, expressed strong opinions about private equity firms poaching early-career professionals. He made them clear during a recent talk at Georgetown University’s Psaros Center for Financial Markets and Policy.
“I know a lot of you work at JPMorgan, you take a job at a private equity shop before you even start with us,” Dimon told the undergraduate students. “I think that’s unethical. I don’t like it.”
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Dimon’s issue? Private equity firms recruit junior bankers right at the start of their careers, sometimes even before they begin working. And the kicker? The jobs they’re offering don’t start until years later.
The students laughed, but Dimon wasn’t amused. He sees it as a bigger problem. JPMorgan has been trying to address this issue for a while, warning new bankers that these recruiting practices are happening earlier than ever. Dimon’s frustration is clear: he doesn’t want his freshly trained employees jumping ship with confidential information in hand.
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“It puts us in a bad position,” Dimon explained. “You are already working for somewhere else and you’re dealing with highly confidential information from JPMorgan. I just don’t like it.”
And it’s not just the companies that suffer. Dimon feels it’s unfair to the young graduates too. They’re being forced into long, drawn-out interview processes for jobs that won’t start for years. “It puts the kid in a terrible position,” he said.
Dimon isn’t stopping at complaints. He’s ready to take action. “I may eliminate it, regardless of what the private equity guys say or the people in the company first. I won’t pay for it.”
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His stance is clear: this isn’t just a competition issue, it’s an ethical one. He believes these early-career professionals are being placed in a conflicted position and it’s time for something to change. Banks, he points out, are now interviewing students earlier and earlier, sometimes even before they’ve declared a major.
“You’re right,” Dimon said in response to a comment from Reena Aggarwal, the event’s interviewer. “You guys should get together some schools and some of the banks … and we come up with policies.”
In the end, though, Dimon believes the individuals are responsible. “You’re going to be facing ethical decisions like that. Think for yourself. How would you feel if you’re on the other side of that thing? Or do you want to be treated that way? Is it fair?” he asked.
Dimon is making it clear: the current system isn’t working for anyone and something has to change.
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This article Jamie Dimon Slams Early-Career Private Equity Moves, Saying It ‘Puts Us in a Bad Position’ originally appeared on Benzinga.com
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