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VOL. 38 | NO. 4 | Friday, January 24, 2014
JPMorgan boosts CEO Dimon's pay to $20 million
NEW YORK (AP) — JPMorgan Chase almost doubled Chairman and CEO Jamie Dimon's pay for 2013, rewarding the executive for settling probes against the bank.
Dimon will receive total compensation of $20 million in 2013, consisting of $18.5 million in stock options and a base salary of $1.5 million, the bank said in a statement Friday.
That compares with total compensation of $11.5 million a year earlier, down from $23 million in each of the previous two years.
The bank says it took several factors into account when deciding on Dimon's pay, including the "sustained long-term performance" of the bank, gains in market share and customer satisfaction as well as his handling of the legal issues facing the lender.
JPMorgan agreed in November to pay $13 billion in a settlement with the Department of Justice and acknowledged that it misled investors about the quality of risky mortgage-backed securities ahead of the 2008 financial crisis. The bank was among the major lenders that sold mortgage-backed securities that plunged in value when the housing market collapsed in 2006 and 2007.
Earlier this month, the bank reached an agreement to pay $1.7 billion to settle criminal charges stemming from its failure to report its concerns about Wall Street swindler Bernard Madoff's private investment service.
JPMorgan Chase & Co.'s stock price climbed $14.51, or 33 percent, to $58.48 in 2013, a bigger gain than Standard & Poor's 500 index, which rose almost 30 percent.
The bank's net income fell 16 percent to $17.9 billion in 2013, from $21.3 billion a year earlier.