JPMorgan boosts Chairman Dimon's pay to US$20 mil.
By Steve Rothwell, APNEW YORK -- JPMorgan Chase almost doubled Chairman and CEO Jamie Dimon's pay for 2013, rewarding the executive for settling probes against the bank.
January 26, 2014, 12:01 am TWN
Dimon will receive total compensation of US$20 million in 2013, consisting of US$18.5 million in stock options and a base salary of US$1.5 million, the bank said in a statement Friday.
That compares with total compensation of US$11.5 million a year earlier, down from US$23 million in each of the previous two years.
The bank says it took several factors into account when deciding on Dimon's pay, including the “sustained long-term performance” of the bank, gains in market share and customer satisfaction as well as his handling of the legal issues facing the lender.
JPMorgan agreed in November to pay US$13 billion in a settlement with the Department of Justice and acknowledged that it misled investors about the quality of risky mortgage-backed securities ahead of the 2008 financial crisis. The bank was among the major lenders that sold mortgage-backed securities that plunged in value when the housing market collapsed in 2006 and 2007.
Earlier this month, the bank reached an agreement to pay US$1.7 billion to settle criminal charges stemming from its failure to report its concerns about Wall Street swindler Bernard Madoff's private investment service.
JPMorgan Chase & Co.'s stock price climbed US$14.51, or 33 percent, to US$58.48 in 2013, a bigger gain than Standard & Poor's 500 index, which rose almost 30 percent.
The bank's net income fell 16 percent to US$17.9 billion in 2013, from US$21.3 billion a year earlier.