NEW YORK (Reuters) - JPMorgan Chase & Co JPM.N is offering bankers at Bear Stearns Cos BSC.N bonuses to stay and support the controversial takeover, a person familiar with the situation said on Thursday.

The wind blows the JPMorgan Chase flag outside its building in front of the Bear Stearns building across the street (C) in New York, March 17, 2008. REUTERS/Chip East

JPMorgan Chief Executive Jamie Dimon met with hundreds of Bear Stearns executives late Wednesday, his first meeting with bank employees since the takeover was agreed to on Sunday.

At the meeting, Dimon, aiming to head off an exodus of Bear Stearns staff, proposed incentives to bank employees who stay and support the deal. He also expressed confidence that the deal would be completed as proposed, said the source, who was briefed on the meeting and is familiar with JPMorgan’s thinking.

Employees who are offered jobs by JPMorgan would receive a bonus that includes JPMorgan shares. Employees who are not offered jobs will receive at least a cash bonus of about 30 percent of their 2007 compensation if they stay through the completion of the deal, the source said.

It is unclear whether Bear Stearns employees, who own about 30 percent of the firm, were swayed by the offer.

“There’s more questions than answers at this point,” said a person familiar with the workings at Bear Stearns.

Spokesmen for JPMorgan and Bear Stearns declined to comment.

Faced with a sudden cash crunch that threatened it with collapse, Bear Stearns agreed to an all-stock takeover offer from JPMorgan that values the storied investment bank at about $285 million. A week ago it was valued at more than $8 billion.

BROKER POACHING

The fire sale offer of about $2.41 a share at current market prices shocked Bear Stearns employees, who saw much of their savings evaporate. Layoffs are all but certain, though the extent of the job losses is not yet clear.

With Bear Stearns employees unsettled, recruiters sense an opportunity. A Google search for “financial services brokers” brought up a link tagged “Bear Stearns Brokers” that connected to the Web site of executive search firm Willis Consulting Inc. The sponsored link, however, has since been removed.

“This opens up opportunities for us,” said Audrey Cullen Davis, president of First Call Associates, a recruiter that specializes in commodities and energy trading.

“For individuals that may not have taken the time to speak with us, now they’re more interested in knowing what other opportunities they may be able to consider,” said Davis, whose firm represents investment banks, commodities traders and private equity firms.

As part of the deal, JPMorgan secured special Federal Reserve financing for $30 billion of Bear Stearns’ less liquid assets. The agreement also includes an option that gives JPMorgan the right to buy Bear Stearns’ valuable Manhattan headquarters, even if the deal is voted down by shareholders.

The transaction, seen as leaving little room for a counter offer, is a plum deal for JPMorgan, according to analysts. The firm’s shares have risen more than 20 percent this week and were up nearly 8 percent to $45.82 in afternoon trading on the New York Stock Exchange.

Bear Stearns shares were up 66 cents, or 12.5 percent, to $5.92, buoyed by hopes of a better offer after tycoon Joseph Lewis, who owns 8.35 percent of Bear Stearns’ shares, said he would talk with the bank and others about possible options.