Dimon’s Bonus Cut By 53%
JP Morgan Chase has cut CEO Jamie Dimon’s bonus by 53%, essentially due to the fallout from the London Whale trading losses.
Dimon will still receive $11.5 million, including a $10 million bonus. In 2012, he was the highest paid banking CEO, taking home $23.1 million.
JPMorgan has also decided to push Dimon’s eligibility to sell the company’s stocks for 18 months. They’re afraid of another fallout such as the London Whale which devastated the bank’s image and crippled the public’s already negative outlook on financial firms.
“As Chief Executive Officer, Mr. Dimon bears ultimate responsibility for the failures that led to the losses in CIO and has accepted responsibility for such failures,” the board said in regulatory filing.
Ironically, JPMorgan has been profitable for three consecutive years. Despite Dimon’s responsibility for the London Whale fiasco, the board of executives did praise him for acting as a true CEO and being forceful with the trading problems.
JPMorgan reported Q4 2012 net income of $5.7 billion, or $1.39 share, with $24.4 billion in revenue. Net income was higher than analysts’ estimates, while revenue was in line with what had been predicted for the year.
The bank’s strong results were driven by a sharp uptick in new mortgages, with mortgage originations increasing 33% year-over year. Fees from mortgages jumped 181% from the prior year.
Dimon said on an analyst call that he expects mortgage revenue to bounce around over the next several quarters.
Revenues in all of the bank’s business line, including consumer and investment banking, increased from last year. Investment banking fees jumped 52% in the fourth quarter.
[Image via jurvetson/Flickr]