US bank chief gets $20m despite $20bn fines

JP Morgan chief executive's income for 2013 rose 74 percent despite huge fines for US bank's role in the crash of 2008.

    US bank chief gets $20m despite $20bn fines
    JP Morgan is the largest US bank by assets and paid $20bn in fines last year [AFP]

    The head of JP Morgan saw his personal income rise 74 percent to $20m in 2013, despite the US bank paying $20bn in fines for its part in the 2008 recession.

    Jamie Dimon, the chairman and chief executive of JP Morgan, earned a base salary of $1.5m and a further $18.5m in shares, the company said in a statement on Friday.

    His pay was reduced to $11.5m in 2012 after huge trading losses, but his biggest package to date is the $23m he received in 2011.

    JP Morgan, the largest US bank by assets, paid $20bn in legal and regulatory fines and settlements last year. This figure included $13bn to settle claims that it misled investors on billions of dollars of mortgage-backed securities, and about $1bn for poor oversight related to its huge "London whale" trading loss in 2012, when a trader lost the bank $6.2bn and tried to cover up his mistake.

    The bank's board decided on Dimon's 2013 compensation according to factors such as "the company's sustained long-term performance" and "the regulatory issues the company has faced and the steps the company has taken to resolve those issues". 

    Its profits fell 16 per cent last year because of the cost of resolving such legal issues.

    A company report said that, under Dimon, the company had "fortified its control infrastructure and processes and strengthened each of its key businesses while continuing to focus on strengthening the company's leadership capabilities across all levels."

    Dimon, 58, has been chief executive of the bank since 2005 and became chairman a year after.

    SOURCE: Agencies


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