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JPMorgan boss pays price for loss

18 Jan 2013 THE AGE


JPMORGAN has halved chief executive Jamie Dimon's pay to $US11.5 million over a multibillion-dollar trading loss racked up in its London office.

The US bank said that Mr Dimon received $US1.5 million in salary and $US10 million in shares for 2012, down from the $US23 million he secured in 2011.

The chief executive stunned Wall Street last May when disclosing that the bank's chief investment office, a division responsible for investing surplus deposits, had lost more than $US6 billion in botched trades in the derivatives market.

Mr Dimon, who is the highest-profile banker on Wall Street, "bears ultimate responsibility for the failures that led to the losses in the CIO and has accepted responsibility for such failures", the bank said.

An internal report into the loss found fault with a slew of other executives, including former chief financial officer Doug Braunstein, Barry Zubrow, who was head of risk management, and Ina Drew, who led the CIO.

Mr Dimon "could have better tested his reliance on what he was told" by senior managers about trading in the CIO, the report found.

The reduction in Mr Dimon's pay came as JPMorgan reported a 53 per cent jump in fourth-quarter profits to $US5.69 billion, as it made more money from its mortgage business.