|
JPMorgan Chase & Co.'s approximately $6 billion in losses from risky derivatives bets last year gave a black eye to Chairman and Chief Executive Jamie Dimon, who had emerged from the financial crisis as America's most respected banker.
Now, the losses -- made by a trader nicknamed the "London Whale" -- are costing Dimon financially.
JPMorgan's board cut Dimon's pay by 50%, citing failures of management that led to losses in the bank's chief investment office.
Dimon will take in $11.5 million in 2012 compensation, down from a $23-million pay package in 2011, the bank said Wednesday as it reported fourth-quarter earnings.
"As chief executive officer, Mr. Dimon bears ultimate responsibility for the failures that led to the losses in CIO and has accepted responsibility for such failures," the company said in a filing with the U.S. Securities and Exchange Commission."Importantly, once Mr. Dimon became aware of the seriousness of the issues presented by CIO, he responded forcefully by directing a thorough review and an extensive program of remediation."
Dimon's 2012 salary remains flat at last year's $1.5 million, but his overall compensation includes only $10 million in restricted stock units, down sharply from the previous year. He was reportedly the highest paid of the major bank chiefs in 2011.
Dimon said he "respected" the board's decision, in which he did not participate.
"This was one huge, embarrassing mistake," he said in a Wednesday morning conference call.
ALSO:
Flu vaccine shortage reported as sniffles spread
Actor Larry Hagman's Santa Monica penthouse is listed at $5.2 million
Bugaboo recalls more than 50,000 pricey Donkey and Cameleon strollers
JPMorgan cuts Jamie Dimon's pay 50% over 'London Whale' losses
This article
JPMorgan cuts Jamie Dimon's pay 50% over 'London Whale' losses
can be opened in url
http://newsconnectione.blogspot.com/2013/01/jpmorgan-cuts-jamie-dimon-pay-50-over.html
JPMorgan cuts Jamie Dimon's pay 50% over 'London Whale' losses
