JP Morgan boss has pay halved
JAMIE DIMON, the chief executive of JP Morgan, has had his pay package halved to $US11.5 million ($10.9 million) over a multi-billion trading loss racked up in the investment bank's London office.
The company said Mr Dimon received $US1.5 million in salary and $US10 million in shares for 2012, half the $US23 million he secured in 2011.
Mr Dimon stunned Wall Street last May when disclosing that the bank's chief investment office (CIO), a division responsible for investing surplus deposits, had lost more than $US6 billion in botched trades in the derivatives market.
Mr Dimon, the highest-profile banker on Wall Street, bore "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 by JP Morgan found fault with other executives, including the former chief financial officer Doug Braunstein, Barry Zubrow, who was head of risk management at the bank, 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 JP Morgan reported a 53 per cent jump in fourth-quarter profits to $US5.69 billion, as it made more money from its mortgage business.
Mr Dimon, who initially dismissed the trading losses as a "tempest in a teapot", defended his handling of them once their scale emerged. "You have mistakes that you acknowledge and you fix," he said. "Those mistakes scared us."
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