Goldman Trumped JPMorgan Last Year, So Why's Dimon's Pay Higher Than Blankfein's?

Apr 4 2014, 8:49pm CDT | by

Goldman Trumped JPMorgan Last Year, So Why's Dimon's Pay Higher Than Blankfein's?
Photo Credit: Forbes Business

Wall Street compensation packages are always going to baffle the general public, but JPMorgan Chase's pay package for its CEO is particularly notable this year.

Jamie Dimon is expected to get one of the biggest compensation packages among the big banks with $20 million for 2013. That’s more than any other big bank CEO including Bank of America Brian Moynihan ($14m), Wells Fargo's John Stumpf ($19.3m) and Citigroup’s Michael Corbat ($14.1m).

But consider this: Dimon’s pay even edges out Wall Street’s money-making king, Lloyd Blankfein, CEO of Goldman Sachs. Blankfein received a 50% pay increase which gets him $19.9 million.

Goldman Sachs saw its stock rise 35% compared to JPM’s 31%. Plus, JPM’s net income dropped 16% in 2013 compared to Goldman’s jumped 7.6%.

Dimon’s $20 million comes as he has one of his worst years as CEO. The bank reported its first ever quarterly loss under Dimon’s lead last year. It was also at the center of several high profile investigations, and ended up shelling out some $20 billion to settle legal claims.

JPM entered a $13 billion settlement with the Department of Justice in which JPM went as far to say that it made serious misrepresentations about its mortgage-backed securities. In other words, in an industry where admitting wrong-doing is as rare as a female banking CEO, JPM actually acknowledged it messed up pretty badly. Yet, Dimon is the highest paid big bank CEO.

It makes you wonder about all the doom and gloom warnings banks and their supporters wield when they become potential targets of prosecutor investigations. Executives and senior management often argue that criminal prosecution would wreck havoc on not only their company but the wider financial world; their stock would plummet and their counterparties become unstable.

Manhattan U.S. Attorney Preet Bharara recently called bull on many of those “chicken little routines” saying in a speech earlier this week he said:

When these arguments are made to me and my staff, we take them seriously—like we take all arguments and submissions. But we also take them, increasingly, with grains of salt, and make our own independent judgment about what actually is likely to happen. What I have found typically is that, in reality, as we had suspected, the sky does not fall.

The sky actually brightens for some, Bharara notes with a not-so-hidden jab at Jamie Dimon. “Stock prices remain steady, or go up, as the company is viewed as putting problems “behind it;” clients and customers and key employees don’t even bat an eye; and sometimes, the CEO even gets a raise,” Bharara said.

Looks like it pays to be good or bad on Wall Street.

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Miami to have 1,000 feet observation tower
Miami, Aug 28 (IANS/EFE) The voters of Miami in the US have approved a proposal by a real estate promoter to build a 1,000 feet high observation tower here.
 
 
Ebola epidemic to get worse: health official
London, Aug 28 (IANS) The Ebola outbreak in West Africa will get worse before it gets better, said a top public health official, the BBC reported Thursday.
 
 
12 Indian firms among Forbes Asia's Fabulous 50
Washington, Aug 28 (IANS) A dozen Indian firms figure in this year's Forbes Asia's Fabulous 50 list of the region's best big publicly traded companies with HDFC Bank making the list more times than any other company.
 
 
US reporter requests privacy after release
Washington, Aug 28 (IANS/EFE) The US journalist, who was freed this week by the miltants in Syria after two years in captivity, Wednesday thanked everyone for their efforts to secure his release and asked for privacy to be with his family.
 
 
 

Latest from the Network

Miami to have 1,000 feet observation tower
Miami, Aug 28 (IANS/EFE) The voters of Miami in the US have approved a proposal by a real estate promoter to build a 1,000 feet high observation tower here. Sixty-nine percent of the voters approved the plans of...
Read more on Business Balla
 
Ebola epidemic to get worse: health official
London, Aug 28 (IANS) The Ebola outbreak in West Africa will get worse before it gets better, said a top public health official, the BBC reported Thursday. Tom Frieden, director of the US-based Centres for Disease...
Read more on Business Balla
 
12 Indian firms among Forbes Asia's Fabulous 50
Washington, Aug 28 (IANS) A dozen Indian firms figure in this year's Forbes Asia's Fabulous 50 list of the region's best big publicly traded companies with HDFC Bank making the list more times than any other company....
Read more on Business Balla
 
First gay sailor of Chilean navy
London, Aug 28 (IANS) A sailor in Chile has become the first serving member of the Chilean armed forces to announce he is gay, the BBC reported Thursday. Mauricio Ruiz, 24, said his decision had "not been easy", but...
Read more on Politics Balla
 
Pakistani cleric ends talks with government
Islamabad, Aug 28 (IANS) Pakistan Awami Tehreek leader Tahir-ul-Qadri Thursday announced he was ending dialogue with the government as his demands were not accepted. Qadri, whose supporters have staged an anti-...
Read more on Politics Balla
 
Verona sign Brazilian midfielder Campanharo
Rio de Janeiro, Aug 28 (IANS) Hellas Verona have signed midfielder Gustavo Campanharo on a season-long loan from Brazilian club Bragantino. In a statement on their official website, the Italian Serie A outfit said the...
Read more on Sport Balla
 
Huntington-Whiteley loves making creative decision
London, Aug 28 (IANS) Supermodel Rosie Huntington-Whiteley has enjoyed indulging her creative tendencies since leaving Victoria's Secret. Huntington-Whiteley has revealed that working with British high street store...
Read more on Celebrity Balla
 
Holmes offers $1,000 reward for return of Suri's pet
Los Angeles, Aug 28 (IANS) Actress Katie Holmes has reportedly offered a $1000 reward for the safe return of her daughter's pet dog following its disappearance. Suri's new new Chihuahua, Honey, went missing Sunday....
Read more on Celebrity Balla
 
Shooting instructor killed as girl accidentally shot in US
Washington, Aug 28 (IANS) A shooting instructor was killed after a nine-year-old girld accidentally shot in the head at a gun range in the US, media reported Thursday. The deadly incident occurred Monday morning at a...
Read more on Politics Balla
 
Bella Thorne splits from Tristan Klier
Bella Thorne has split up with her boyfriend of more than two years, Tristan Klier. The 16-year-old actress confirmed that they recently decided to part ways after being asked about their relationship status on Twitter...
Read more on Celebrity Balla