BabaRa
24th January 2014, 23:54
Even though JP Morgan bank lost $20 billion in legal settlements and admitted to misleading investors in 2013, Jamie Dimond, CEO received a 74% pay increase!!!
Artcle:
The CEO of the nation's largest bank received $20 million, including $18.5 million of restricted stock recently awarded, the company said in a public filing on Friday.
The raise comes after a year in which Dimon's leadership at the bank coincided with a slew of legal penalties, including a massive settlement with the Justice Department over fraudulent activities.
Dimon's pay was curtailed to $11.5 million for 2012, half the $23 million compensation in each of the prior two years, according to company filings, after the company lost $6.25 billion on bets known as the "London Whale" derivatives trades. When those trades first came to light in April 2012, Dimon dismissed them as a "tempest in a teapot."
U.S. median household income was $51,017 in 2012, adjusted for inflation, according to the Census Bureau.
Most employees at JPMorgan did not receive pay increases for 2013 because profits declined as a result of high legal bills to settle government and private claims against the bank.
Directors cited Dimon’s 2012 pay cut as evidence that the board is independent from its chairman. The board's independence became an issue at the company's annual meeting when some shareholders tried, but failed, to pass a referendum to separate the roles of board chairman and CEO.
Shareholders voted against that proposal after board members said that Dimon might leave if he did not retain his chairman title.
The New York Times reported Friday that directors had decided to pay Dimon more for 2013 after a series of meetings that turned heated at times. JPMorgan spokesman Joseph Evangelisti said the Times' characterization of the director meetings was wrong.
The bank suffered a number of setbacks in 2013. In January of last year, the Federal Reserve and the Office of the Comptroller of the Currency imposed sanctions on the bank for weak risk and financial controls, as well as deficient safeguards against money laundering and violations of the U.S. Bank Secrecy Act, over the 2012 derivatives loss.
Over the course of the year, the bank also agreed to a series of high-cost legal settlements, including $13 billion to resolve claims that it overstated the quality of the mortgages it was selling to investors before the financial crisis.
Artcle:
The CEO of the nation's largest bank received $20 million, including $18.5 million of restricted stock recently awarded, the company said in a public filing on Friday.
The raise comes after a year in which Dimon's leadership at the bank coincided with a slew of legal penalties, including a massive settlement with the Justice Department over fraudulent activities.
Dimon's pay was curtailed to $11.5 million for 2012, half the $23 million compensation in each of the prior two years, according to company filings, after the company lost $6.25 billion on bets known as the "London Whale" derivatives trades. When those trades first came to light in April 2012, Dimon dismissed them as a "tempest in a teapot."
U.S. median household income was $51,017 in 2012, adjusted for inflation, according to the Census Bureau.
Most employees at JPMorgan did not receive pay increases for 2013 because profits declined as a result of high legal bills to settle government and private claims against the bank.
Directors cited Dimon’s 2012 pay cut as evidence that the board is independent from its chairman. The board's independence became an issue at the company's annual meeting when some shareholders tried, but failed, to pass a referendum to separate the roles of board chairman and CEO.
Shareholders voted against that proposal after board members said that Dimon might leave if he did not retain his chairman title.
The New York Times reported Friday that directors had decided to pay Dimon more for 2013 after a series of meetings that turned heated at times. JPMorgan spokesman Joseph Evangelisti said the Times' characterization of the director meetings was wrong.
The bank suffered a number of setbacks in 2013. In January of last year, the Federal Reserve and the Office of the Comptroller of the Currency imposed sanctions on the bank for weak risk and financial controls, as well as deficient safeguards against money laundering and violations of the U.S. Bank Secrecy Act, over the 2012 derivatives loss.
Over the course of the year, the bank also agreed to a series of high-cost legal settlements, including $13 billion to resolve claims that it overstated the quality of the mortgages it was selling to investors before the financial crisis.