JPMorgan Holds Dimon Responsible for CIO Losses, Cuts Pay
JPMorgan Chase announced in a form 8-K released today (1/16/13) that the firm’s Management Task Force and the independent Review Committee of the firm’s Board of Directors have each concluded their reviews relating to the 2012 losses by the firm’s chief investment office and have released their respective reports.
The company said, “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. Importantly, once Mr. Dimon became aware of the seriousness of the issues presented by CIO, he responded forcefully by directing a thorough review and an extensive program of remediation.”
JPMorgan Chase also announced that the Board has approved 2012 compensation for Jamie Dimon, chairman and chief executive officer, in the amount of $11.5 million, including salary of $1.5 million (flat with the prior year) and incentive compensation of $10 million, all in the form of restricted stock units (down 53.5% from the prior year). The Board also deferred, for a period of up to 18 months, vesting on options in the form of stock appreciation rights it had granted Dimon in January 2008.
The company said that in making its compensation determinations, the Board focused on the long-term, as well as the annual, performance of the firm and on the entire range of Dimon’s responsibilities, and took into consideration both the continued strong performance of the firm, and the CIO losses, including Dimon’s responsibility as the firm’s chief executive officer.
To read JPMorgan’s January 16, 2013 Form 8-K click here.
To read JPMorgan’s CIO reports, click here.