Jan. 24 (Bloomberg) — JPMorgan Chase & Co. gave Chief Executive Officer Jamie Dimon a 74 percent raise to $20 million last year, bringing his pay closer to where it stood before the board faulted his oversight of botched derivatives bets.
Dimon, who also serves as chairman, received $18.5 million in restricted stock, the New York-based lender said today in a regulatory filing. His salary was unchanged at $1.5 million, and he got no cash bonus, according to the filing.
While board members boosted Dimon's pay from 2012, they kept it below levels from prior years after JPMorgan was beset by regulatory and criminal probes, agreeing to more than $23 billion in settlements in 2013. The board had cut his package in half last January to $11.5 million after finding he bore responsibility for faulty oversight of botched derivatives bets.
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Dimon's 2012 compensation, which included $10 million in restricted shares, was less than at least three of his subordinates, including Mike Cavanagh and Daniel Pinto, the corporate and investment bank co-heads who got $17 million apiece. Among CEOs of the six largest U.S. banks, Dimon's pay tied for fourth. His compensation package had ranked No. 1 a year earlier.
Pay is set by the board's compensation committee, led by Lee Raymond, 75, Exxon Mobil Corp.'s former chairman and CEO. The exact total of his stock payout for 2013 may differ and will be disclosed when the company files a proxy for its annual shareholders meeting. JPMorgan's shares climbed 33 percent last year, matching the increase of the 81-company Standard & Poor's 500 Financials Index.
Shareholders' support
Dimon became CEO at the end of 2005 and added the title of chairman a year later. His reputation as a top manager, along with his pay, has fluctuated since then. While JPMorgan emerged from the financial crisis as the only large U.S. bank to avoid quarterly losses, the trading debacle in 2012 prompted some investors to call for splitting his dual roles. Shareholders rejected that proposal at a meeting in May.
Dimon was paid $49.9 million for 2007, including special stock awards. During the financial crisis a year later, he took only a $1 million salary. He got $15.2 million for 2009, and $23 million for each of the two years that followed.
In last year's third quarter, the bank posted its first loss on Dimon's watch after taking a $7.2 billion charge to cover the cost of mounting litigation and regulatory probes. The deficit ended the firm's streak of three record annual profits. Full-year net income fell 16 percent to $17.9 billion.
Dimon pushed last year to resolve government investigations, including at least eight Justice Department probes listed in the firm's quarterly report in October.
Settlement tally
Settlements since then have included a record $13 billion deal to resolve inquiries into mortgage-bond sales. The bank paid $2.6 billion and avoided criminal prosecution while settling claims it failed to stop Bernard Madoff's Ponzi scheme. The firm also paid more than $1 billion last year tied to the botched derivatives bets, which lost more than $6.2 billion in 2012. In that case, U.S. and U.K. regulators faulted its oversight of a trader known as the London Whale because his positions were so large.
Dimon told journalists earlier this month that he couldn't predict whether he might be able to put the legal disputes behind the bank this year.
With assistance from TK in New York.
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