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JPMorgan Chase head Dimon scoops $8.5 million despite bank’s jumbo fines

AFP-JIJI

JPMorgan Chase head Jamie Dimon’s pay nearly doubled to $20 million last year despite the bank being forced to pay out billions to resolve legal and regulatory cases arising under his tenure.

According to a filing Friday, JPMorgan said that Dimon would receive a 2013 bonus of $18.5 million worth of restricted stock to be vested over the next three years, “tying Mr. Dimon’s 2013 compensation to the company’s future performance, including continued progress on the company’s regulatory agenda.”

The base salary for Dimon, JPMorgan’s chairman and CEO, was $1.5 million, unchanged from 2012.

His total compensation was $20 million, compared with $11.5 million in 2012. In 2011 and 2010, Dimon received an annual pay package of $23 million, up from $15.2 million for 2009.

The JPMorgan board decided his annual compensation according to key 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,” the filing said.

The largest U.S. bank by assets paid a record $20 billion in legal and regulatory fines and settlements last year. Those included $13 billion to settle charges that it misled investors on billions of dollars of mortgage-backed securities, and about $1 billion for poor oversight related to its huge “London whale” trading loss in 2012.

The bank earlier this month reported full-year 2013 net earnings of $17.9 billion, down nearly 16 percent from 2012, much of the fall due to the fines it has paid out.

The filing said that, under Dimon, “the company has 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.”

Shares in the JPMorgan Dow Jones component were down 2.3 percent at $55.18 in the last hour of trade Friday amid a broad, steep sell-off on Wall Street.