According to Bloomberg the highest-paid banker in the
Finance 50 is Jamie Dimon of JPMorgan Chase & Co. His total compensation increased 11 percent,
to $23 million, even as the bank’s stock sank 20 percent. In mid-May of this
year, Dimon called his own judgment into question when his bank announced that
it had lost at least $2 billion investing in synthetic credit securities.
JPMorgan’s stock dropped more than 10 percent in the two days after the
disclosure.
“We’re accountable, and what happened violates our own
standards and principles about how we want to operate the company,” Dimon said
in a conference call on May 10. “This puts egg on our face, and we deserve any
criticism we get.” Dimon is No. 9 on Bloomberg Markets magazine’s ranking of
financial CEOs who provided the least shareholder value during the three years
from 2009 through 2011. The ranking is based on a score derived by calculating
the percentage point return on JPMorgan’s stock from 2009 to 2011 for every $1
million of Dimon’s 2011 incentive pay. JPMorgan’s stock rose 10 percent in the
three years covered by the ranking.
Citigroup’s Pandit leads the least-shareholder value ranking
even though he agreed to take only a dollar in compensation for part of 2009
and all of 2010. His score is based on his $7.84 million in incentive pay for
2011, which was awarded to him after he kept a promise to restore the bank to
profitability. Citi, the third-largest bank in the U.S. by assets, reported
a 6.4 percent full-year profit increase, to $11.3 billion, in 2011. The bank’s
stock, however, has languished -- down 61 percent in the three years from 2009
through 2011….
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