NEW YORK Jan 24 Jamie Dimon, chairman and chief
executive of JPMorgan Chase & Co, got a 74 percent pay
increase for 2013, when $20 billion of legal settlements weighed
on the bank's income.
The CEO received $20 million, including $18.5 million of
restricted stock recently awarded, the company said in a public
filing on Friday. Dimon's base salary is $1.5 million.
Dimon was paid $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".
Most employees at JPMorgan did not get pay increases for
2013 because profits declined as a result of high legal bills to
settle government and private claims against the bank.
JPMorgan, the biggest bank in the U.S. by assets, employed
251,196 people at year-end.
The bank suffered a number of black eyes in 2013. In January
of last year, the U.S. 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 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.
Those settlements cut into the bank's earnings for the year
-- JPMorgan's income fell 16 percent for 2013 to $17.92 billion.
In the new pay package, half of Dimon's restricted stock
units will vest after two years and half after three years,
which JPMorgan's statement said ties his compensation to the
company's future performance, including progress meeting
requirements from regulators to improve its risk controls.
U.S. median household income was $51,017 in 2012, adjusted
for inflation, according to the Census Bureau.
Directors cited the 2012 pay cut as evidence that the board
is independent from Dimon, who is 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
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.