JPMorgan slashes CEO Jamie Dimon's pay on 'Whale' trade
Jamie Dimon, JPMorgan Chase's Chief Executive, had his 2012 bonus cut in half after the bank's board decided he should shoulder blame for $6.2 billion of "London Whale" trading losses.
Dimon's bonus cut, which cost him more than $10 million, came even as JPMorgan posted a 53 percent jump in fourth-quarter profit and record 2012 earnings. The fourth-quarter results were helped by increased mortgage lending profits and a decline in bad loan costs. Without these results, Dimon's pay would have been worse.
Dimon's 2012 pay of $11.5 million will fall from being high for the sector to being ordinary. John Stumpf, the CEO of Wells Fargo & Co made $18.9 million in 2011, while Brian Moynihan, CEO of Bank of America, made $8.1 million. In 2011, Dimon was paid $23 million.
In addition to posting earnings and disclosing Dimon's pay, JPMorgan released t wo company r eports about the l osing t rades. Th e positions, known as the "London Wh a le" tr ades because they were so large relative to the market, lost a little more money for the bank in the fourth quarter. The reports added more detail to prior disclosures about the trades.
Money managers that own the stock said they were satisfied with the pay cut.
"We've been a long-time believer in linking pay to performance, and we think that linkage was made in this case," said Ricardo Duran, a spokesman for the California State Teachers' Retirement System, which owns JPMorgan shares.
The London Whale reports took attention
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