JPMorgan Cuts CEO Dimon's Pay in Half—to $11.5M

Meanwhile, traders at Morgan Stanley get IOUs
By Kevin Spak,  Newser Staff
Posted Jan 16, 2013 11:06 AM CST
JPMorgan Cuts CEO Dimon's Pay in Half—to $11.5M
In this June 13, 2012 file photo, JPMorgan Chase CEO Jamie Dimon, head of the largest bank in the United States, testifies on Capitol Hill.   (AP Photo/J. Scott Applewhite, File)

That sound you're hearing is probably Wall Street's tiniest violin playing for Jamie Dimon. As many expected, JPMorgan Chase's board slashed the CEO's salary in response to the "London Whale" disaster, dropping his incentive pay a backbreaking 53.5% to $10 million, leaving him a mere $11.5 million with which to feed his family, CNN Money reports. "As Chief Executive Officer, Mr. Dimon bears ultimate responsibility for the failures that led to the losses," the board wrote. Of course, the New York Times notes that the firm had an excellent year despite the Whale episode, with fourth quarter profit up 53% year-over-year.

Maybe Dimon can cry on the shoulders of Morgan Stanley's traders and investment bankers, thousands of whom will be getting IOUs instead of cash bonuses this year, the Wall Street Journal reports. In response to the financial crisis, the bank is now breaking bonuses into four chunks, the last of which will come in 2016—if the employees are still with the bank. "I don't think there will be a lot of cheers on the trading floors of Morgan Stanley," one former Fed official remarked. (More Jamie Dimon stories.)

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