What a difference a year makes for Jamie Dimon! Last year, he had half of his paycheck cut to a measley $11.5 million for an embarrassing multi-million dollar trading blowup that resulted in $1 billion in fines. This year, after Chase paid the feds $20 billion in penalties for transgressions committed on Dimon’s watch, JPMorgan’s Board of Directors decided that Dimon should receive a raise.
1. Is the raise expected to restore him to his previous $23 million pay package?
2. What roles did Mr. Dimon play in Justice Department moves toward JPMorgan penalties for shaky mortgage investments and the Madoff fraud?
3. Perform a cost/benefit analysis of Jamie Dimon’s performance for JPMorgan. In other words, what things are positive that justify a raise? What things are negative that support the debate presented by a vocal minority of directors who want to keep his compensation largely flat?
Silver-Greenberg, J. and S. Craig. (2014). Fined Billions, JPMorgan Chase Will Give Dimon a Raise. The New York Times, Jan. 23 (Retrievable online at http://dealbook.nytimes.com/2014/01/23/fined-billions-bank-approves-raise-for-chief/?_php=true&_type=blogs&rref=homepage&module=Ribbon&version=origin®ion=Header&action=click&contentCollection=Home%20Page&pgtype=article&_r=0)