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JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon, who got a 74 percent raise for his work in 2013, stands to reap a separate and bigger payday within months.
January 27 -
JPMorgan Chase & Co. (JPM) gave Chief Executive Officer Jamie Dimon a 74 percent raise to $20 million last year, bringing his pay closer to where it stood before the board faulted his oversight of botched derivatives bets.
January 24
In case you missed it, Jamie Dimon is
News broke late last week that JPMorgan Chase's (JPM) board had voted to increase the chairman and CEO's 2013 pay by 74%. Dimon whose pay was cut last year to $11.5 million, following the London Whale scandal is set to receive $18.5 million in restricted stock in addition to his $1.5 million base salary.
Now Bloomberg reports that Dimon
This possibility and the board's initial decision elicited a
"What was the board thinking?"writes
Some pundits argued that, beyond the settlements, JPMorgan's performance hardly justified the increase.
"Dimon's pay increased far faster than did the company's stock,"writes Reuters Breaking Views
But Dimon's always had his
Per The Street's
Reports indicate the JPMorgan board itself was divided over the issue, but ultimately elected to raise Dimon's pay after deciding that the bank's year would have been a whole lot worse had
"Any chief executive who can steer their firm toward $18 billion in annual profits while under investigation by seven federal agencies, dozens of state regulators and two other foreign countries is surely worth many multiples of a measly $18 million,"he writes.
Dimon certainly isn't the first CEO to receive a big paycheck following a less-than-stellar year. (As a Forbes column authored by American Banker Editor in Chief Neil Weinberg back in 2007 points out, former Bear Stearns CEO James E. Cayne
Was Jamie Dimon's raise deserved? Why or why not? What factors should be used to determine an executive's compensation? Let us know in the comments section below.
Jeanine Skowronski is the deputy editor of BankThink. You can contact her at