J.P. Morgan Chase CEO 'Punished' With $11.6 Million Pay Cut
I am attempting not to burst into tears as I write of the sad plight of J.P. Morgan Chase and Company Chief Executive Officer Jamie Dimon, who has endured the “pain and struggle” of a massive pay cut, his 2012 compensation dipping to $11.5 million from $23.1 million.
Dimon suffered this indignity because of the board’s conclusion that he “bears ultimate responsibility for the failures that led to the (multi-billion-dollar company) losses.”
If an $11.5 million compensation package is afforded someone that has made grievous and costly errors, then the corporate world is in sad shape.
What a putrid example the case of Mr. Dimon sets for those of us who live in the real world, we who must produce in order to bring home an annual middle class salary which is less than what Mr. Dimon “earns” in three days. I believe this case helps set the stage for future civil unrest as the “have nots” take revenge against the “haves,” particularly against those that receive outlandish compensation that many would feel they do not deserve.
Ed M
7:03 am on Friday, January 18, 2013
While I agree Mr. Dimon is not someone who should be looked up to, a 50% pay cut is huge. What if your pay was cut 50% for something you did, Oren? Would that be a good incentive to not do that again? It would be for me!
Robert A. Shoaf
10:10 am on Friday, January 18, 2013
For someone at Dimon's compensation level, it's really a non-event, sadly. His lifestyle won't be affected in the slightest, and it's just another example of corporate boards not performing their fiduciary duty, but just being lackeys and rubber stamps for the CEO.
Cash
1:38 pm on Friday, January 18, 2013
Oren, what's your suggested punishment? Should Mr Dimon be fired? Who would you recommend run this billion dollar company? Mr Dimon doesn't need the money. Wether it's 1/2 his income or double his income. It has no impact. He's running this compan because it's what he has been trained to do for 30 years. The mistakes that happened did happen under his watch, but they were decisions made by other mebers of the company that are supposed to know thier business. Their stock price has doubled in less than a year, and will double again in another 12 months. Take some advice from somoene that knows this business..BUY as much BAC stock as you can afford and be grateful someone as smart as Jamie Dimon is running that company. Don't hate the player, hate the game.