JPMorgan Chase (JPM) Chief Executive Officer Jamie Dimon had his pay cut by half after a review of losses at the bank's chief investment office found he bears responsibility for the blunders.
The CEO's compensation for 2012 is $11.5 million, the New York-based bank said today on its website, compared with $23 million a year earlier. The 2012 sum includes a $1.5 million salary and $10 million of incentive compensation.
"Mr. Dimon bears ultimate responsibility for the failures that led to the losses in CIO and has accepted responsibility for such failures," the New York-based company said today on its website after spending about eight months reviewing what Dimon, 56, has called "egregious mistakes" at the CIO.
JPMorgan is working to rebuild investors' trust after losing more than $6.2 billion in last year's first nine months on derivatives bets by U.K. trader Bruno Iksil, nicknamed the London Whale because his positions were so big. The debacle fueled legal claims against the company and its executives, prompted probes in the U.S. and abroad and this week led to the first regulatory sanctions, as banking watchdogs found internal-control "deficiencies."
The bank said its review of Dimon took into account his decisions to replace senior managers, efforts to claw back their pay and the formation of a team to examine what went wrong.
"Once Mr. Dimon became aware of the seriousness of the issues presented by CIO, he responded forcefully by directing a thorough review and an extensive program of remediation," according to the presentation.
