[QODLink]
Americas

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.

Last updated: 25 Jan 2014 11:57
Email Article
Print Article
Share article
Send Feedback
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.

311

Source:
Agencies
Email Article
Print Article
Share article
Send Feedback
Topics in this article
People
Country
City
Featured on Al Jazeera
As Western stars re-release 1980s charity hit, many Africans say it's a demeaning relic that can do more harm than good.
At least 25 tax collectors have been killed since 2012 in Mogadishu, a city awash in weapons and abject poverty.
Tokyo government claims its homeless population has hit a record low, but analysts - and the homeless - beg to differ.
3D printers can cheaply construct homes and could soon be deployed to help victims of catastrophe rebuild their lives.
Featured
Pro-Russia leaders' election in Ukraine's east shows bloody conflict is far from a peaceful resolution.
Critics challenge Canberra's move to refuse visas for West Africans in Ebola-besieged countries.
A key issue for Hispanics is the estimated 11.3 million immigrants in the US without papers who face deportation.
In 1970, only two mosques existed in the country, but now more than 200 offer sanctuary to Japan's Muslims.
Hundreds of the country's reporters eke out a living by finding news - then burying it for a price.