Bear Analysts Irked By Severance Memo

As Bear Stearns(BSC Quote) employees await word of whether they will lose their jobs after JPMorgan Chase(JPM Quote) takes over, grumbling is emerging over proposed severance packages.

Sources familiar with the situation told TheStreet.com that Bear's analysts are furious at a decision to characterize their jobs as "non-administrative," a move that could cost them thousands of dollars in severance money. Most Bear employees expect to hear from JPMorgan about their fate this week and JPMorgan said it plans to tell everyone by the end of the month.

An email obtained by TheStreet.com sent last week by Kay Booth, head of Bear's equity research, said analysts were "generally considered to be a revenue generating and client facing role." Revenue producers have been told they can expect to qualify for between 25% and 33% of last year's bonus in their severance package, vs. as much as 75% for administrative employees, according to accounts of communications from JPMorgan provided by several Bear employees, including two in senior positions with the firm.

Bear Analysts Livid About Payoff

The severance packages also include roughly three weeks of pay for each year an employee worked at the firm, plus an automatic eight weeks and the portion of the bonuses, according to the Bear employees. All Bear employees also will receive a one-time grant of restricted JPMorgan stock on June 2 and a cash bonus and more restricted stock at the end of the year. The stock will vest in two to three years.

An analyst with 10 years of experience at a northeastern firm Bear's size can expect a salary in the market midrange of between $70,374 and $89,740 and a bonus of between $68,456 and $84,856, according to Salary.com.

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