Dismay for Pay at JPMorgan Chase
By ANTONY CURRIE
Jamie Dimon’s bonus represents another whale of a fail for JPMorgan Chase. The board’s decision to give its chairman and chief executive a 73 percent raise, to $20 million, is unjustifiable after last year’s performance. Shareholders should have a loud say against this pay – and the lead director, Lee Raymond.
For starters, Mr. Dimon’s pay increased far faster than the company’s stock did. JPMorgan’s shares were up a third, just keeping pace with its universal banking rivals in the United States. Core earnings also weren’t anything to brag about. At $42 billion, before taxes and provisions and after adjusting for one-off items, according to Citigroup analysts, that represented a 2.4 percent decline from 2012.
Directors weren’t convincing with their rationale either. Gaining market share is only good if it comes with more profit. Improving customer satisfaction is encouraging but an inadequate metric on which to base a pay raise. Trying to deflect the legal bills by blaming much of them on pre-acquisition Washington Mutual and Bear Stearns ignores the fact that Mr. Dimon signed those deals. Claiming the bank has improved controls “under Mr. Dimon’s stewardship” is plain laughable. Regulators forced them on him.
http://dealbook.nytimes.com/2014/01/24/dismay-for-pay-at-jpmorgan-chase/
