So Jamie Dimon got a 74% raise despite having some huge losses over the past year.
I guess that expression, "don't blame the player blame the game" comes to mind.
Below is a partial on the fines and penalties over the last 12 months.
$13B Fraudulent Mortgage Backed Securities
$920M for the London Whale Scandal
$400M Manipulation of Energy
$2.6B For not reporting on Madoff
http://www.ft.com/intl/cms/s/0/6adfd77a-...z2sg7pe9ea
I guess that expression, "don't blame the player blame the game" comes to mind.
Below is a partial on the fines and penalties over the last 12 months.
$13B Fraudulent Mortgage Backed Securities
$920M for the London Whale Scandal
$400M Manipulation of Energy
$2.6B For not reporting on Madoff
http://www.ft.com/intl/cms/s/0/6adfd77a-...z2sg7pe9ea
Quote:Quote:
Jamie Dimon, chairman and chief executive of JPMorgan Chase, was paid $20m in 2013, a 74 per cent annual increase, despite high-profile legal woes that have plagued the biggest US bank by assets.
His base salary of $1.5m remained flat while Mr Dimon was awarded $18.5m in restricted stock options, according to a company filing on Friday. That compares to 2012 when Mr Dimon’s pay was cut in half to $11.5m after the “London Whale” trading scandal that cost the bank billions.
The 2013 package is still likely to be controversial given the bank’s earnings have been plagued by legal costs. It reported lower profits in the fourth quarter and a loss in the third quarter, its first since 2004, after a big litigation charge.
JPMorgan has amassed a $23bn war chest to tackle legal issues as it hammers out settlements stemming from the financial crisis. In November, it agreed to pay a record $13bn to the Department of Justice and state authorities for mis-selling mortgage-backed securities.
In justifying the pay increase, independent members of JPMorgan’s board remarked how legal problems at Washington Mutual and Bear Stearns, acquired during the financial crisis, had predated the company’s ownership. During Davos meetings this week Mr Dimon told CNBC that these penalties were “unfair”.
“Under Mr Dimon’s stewardship, the company has fortified its control infrastructure and processes and strengthened each of its key businesses,” independent members said in the filing.
Analysts said that despite the legal problems, his performance was linked to the share price, which rose 33 per cent last year. Some investors were not concerned about the pay rise, with one noting that baseball players earn more than Mr Dimon.
However, Dennis Kelleher, chief executive of Better Markets, a Washington DC-based group that promotes public interest in financial markets, said: “It’s as shocking as it is indefensible,” referring to Mr Dimon’s pay.
“It’s a real slap in the face to the DoJ and financial regulators who think that the actions that they’ve taken in the last year have been appropriate to punish and deter JPMorgan Chase.”
Mr Dimon’s role as both chairman and chief executive is likely to come under scrutiny again at the next annual general meeting in the spring, as investors consider whether the roles should be split.
Analysts have taken some comfort from the bank’s determination to put its legal issues behind it. Other US banks have yet to settle with the president’s task force on residential mortgage-backed securities or with the Federal Housing Finance Agency.
It’s a real slap in the face to the DoJ and financial regulators who think that the actions that they’ve taken in the last year have been appropriate to punish and deter JPMorgan Chase JPMorgan took another $1.1bn charge this month to top up its legal reserves to cover $2.6bn in settlements for its failure to alert US authorities to Bernard Madoff’s Ponzi scheme. In November, it agreed to a $4.5bn settlement with a group of institutional investors over mortgage repurchase and servicing claims.
Those settlements came after it reached a $920m agreement with US and UK regulators in September as a result of the London Whale trading scandal. Mr Dimon famously called the position a “tempest in a teapot” before acknowledging that the trade had gone badly wrong.
Asked whether he had thought about resigning in the wake of the settlements or faced calls to quit from shareholders, Mr Dimon said on the fourth-quarter earnings call: “No, no and it’s all up to the board.”
For the rank and file, bankers’ pay was reined in across the bank. Last week, JPMorgan said pay was down year on year, though flat at 27 per cent of revenues.
At Morgan Stanley, where a focus on equities and wealth management paid off in the fourth quarter, James Gorman, chief executive, received a $4.9m stock bonus for 2013, up 86 per cent from the year before, according to a regulatory filing.
“There were some people who thought that ‘say-on-pay’ was a neat way of finessing this,” said Jill Fisch, a professor of law at the University of Pennsylvania. “The shareholders aren’t going to come in and fix this issue when you think about who the shareholders are.”
Fate whispers to the warrior, "You cannot withstand the storm." And the warrior whispers back, "I am the storm."
Women and children can be careless, but not men - Don Corleone
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