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
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.
[to top of second column]
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 title.
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.
(Reporting by David Henry; editing by
Andrew Hay and Stephen Powell)
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