Open Thread: Does JPMorgan CEO Dimon deserve $23 million?
Jamie Dimon is the chief executive officer of JPMorgan Chase.
May 15th, 2012
10:03 AM ET

Open Thread: Does JPMorgan CEO Dimon deserve $23 million?

Jamie Dimon, the CEO of the nation's largest bank, JPMorgan, went before before shareholders at the company's annual meeting Tuesday and had his $23 million pay package approved, CNNMoney.com reports.

The meeting came  just days after the bank disclosed a $2 billion trading loss, an event that led to the departure of its chief investment officer and forced its CEO to apologize for what he called "a terrible mistake."

Dimon, who also serves as the bank's chairman, faced shareholders who have seen the company's stock decline by more than 14% over the previous five trading sessions.

In the wake of the 2008 financial crisis, shareholders have looked upon the nation's largest banks with increased scrutiny, and have often used shareholder meetings to push an agenda of reform.

Read about how JPMorgan made its multi-billion dollar blunder, and how Dimon gets $23 million for 2011 and bragging rights and then let us know in the comments section how you feel about the CEO's $23 million compensation package.

Do you think Dimon should get that kind of compensation? Does he deserve the pay considering how much his company profits or does a message need to be sent to major bank executives? Let us know below and we may feature your comments on CNN.com

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Filed under: Business • Economy • Finance
soundoff (871 Responses)
  1. Doug

    He should get whatever the board thinks he is worth. Based on the stock performance, I would vote not to approve his compensation package.

    As a side note, people are WAY overblowing the $2 billion loss. That is a grand total of .1% of JP Morgan Chase's value. To put it in perspective, if you had $100 cash in your hand, you would lose a dime. Do any of you really think that's a major hit?

    May 15, 2012 at 11:44 am | Report abuse |
    • Bert

      Do you truly believe the JP Morgan bank is worth $2 trillion??

      May 15, 2012 at 11:56 am | Report abuse |
    • HaleBopp1996

      It's all a question of perspective. It may be the equivalent of losing a dime from a hundred dollar bill, but remember, this is TWO BILLION DOLLARS! That is a mistake no business can really afford, no matter how big they are. Most people, myself included, can't really get their minds around just how much two billion dollars is. If a teller at the bank made a mistake and cost the bank $100.00 at the end of the day would they get a pat on the back and a big bonus? This man, who is ultimately responsible for the bank is being paid $23M while his bank's shareholders have lost 14 % of their value and he is still getting more money than most people will earn in a lifetime. He is also probably working quite hard, along with his peers, to ensure that they don't have to pay any more in taxes than the ordinary joe with a family who is living paycheck to paycheck, worrying if he will still have a home and a job six months from now due in part to the excessive culture of greed that has ruled our economy for the past decade, so amply demonstrated by our good friends at the "too big to fail" banks.

      May 15, 2012 at 12:32 pm | Report abuse |
  2. Mary

    All this hoopla over one man while the FEDERAL RESERVE still doesn't get audited

    May 15, 2012 at 11:45 am | Report abuse |
  3. Dave

    After reading the insane amounts Wall Street barons earn in compensation, I can more readily understand why Islamic fundmentalists, anarchists, third world nations and the poor in our midst are moved to commit acts of violence, insurrection and civil disobedience. How much longer can such decadence persist without some form of civil backlash?

    May 15, 2012 at 11:45 am | Report abuse |
  4. banasy©

    No, hell no!
    Sick of reading about stuff like this...
    Fees at Chase will go up yet again; next they'll charge one for breathing their oh, so rarified air!

    May 15, 2012 at 11:46 am | Report abuse |
  5. sjay

    no no no....give all the middle and lower class 1 million dollars and requrie them to buy a house and add solar power. purchase 2 hybrid vehicles and go to school....this will stir the economy like a whirlwind

    May 15, 2012 at 11:46 am | Report abuse |
  6. Amira levy

    What kind of a question is that? For sure he should not be paid .

    May 15, 2012 at 11:47 am | Report abuse |
  7. ptneely

    Unfortunately, he does deserve the money because his employment contract (whcih high level executives have and we average Joes do not have) contractually says he should get. It does beg the question about how effective corporate governance is if such a contract could have ever been agreed to by the Board fo Directors. We might not like the compensation, but a contract cannot be voided just because we are unhappy with the results afterwards.

    May 15, 2012 at 11:48 am | Report abuse |
  8. ocean0927

    It's up to the shareholders and the board. If they want someone to take their money – that's their business. It's their own fault. Too bad he probably won't be man enough to take responsibility and step down. He'll take the money and then call it quits.

    May 15, 2012 at 11:48 am | Report abuse |
  9. Alex Esterhase

    $23 million is obscene. He should swallow the $2billion loss – pay him $1 per year for the next 5 years.
    Dimon's are not forever!

    May 15, 2012 at 11:48 am | Report abuse |
  10. RipSaw

    Absolutely not! All the staff responsible for this boondoggle should be suspended without pay and the money saved applied toward the loss. If there were criminal violations, those should be vigorously prosecuted.

    May 15, 2012 at 11:48 am | Report abuse |
  11. Hangar13

    I love the way all these "experts" who have never managed a lemonade stand somehow "know" how much a CEO of a multi-billion dollar corporation should be paid. Maybe he deserves $23 mllion and maybe he doesn't; it's none of our business unless we're stockholders, and those are the very people who will decide how he will be compensated. My guess is, if they can find someone to do the same or a better job for less money, they will. Running a large bank is complicated – the theory of compensation is not, you hire the one who can do the best job at the best price. It's the same thing you do with a quarterback or a power forward, or a movie star.

    May 15, 2012 at 11:49 am | Report abuse |
    • BrightonU

      You stated (what he makes is none of our business unless we are stockholders).
      Reading that now do you understand just how wrong that statement is, or do you believe every man and now corporation (thank you supreme court -- anybody else see strings on those 12?) is an Island?

      May 15, 2012 at 1:54 pm | Report abuse |
  12. Dave

    Got to pay the lawyers somehow. You want the taxpayers on the hook for a public defender? His employer wouldn't want him to have to cut any deals with any feds. Wouldn't be good for the stockholders, over the short term anyway, which is all that matters.

    May 15, 2012 at 11:50 am | Report abuse |
  13. Quinney

    How DISGUSTING!!!! So taxpayers bail out Wall St. while foreclosures, unemployment, homelessness and student loan debt balloons. This is what the 1% want. Take from the middle and lower-middle, blame it on the poor but make sure that their bank flow never seizes no matter what the expense. People should be up in arms. $2 BILLION loss and the CEO deserves a package of $23 million. How many struggling Americans could $23 million help? Does anyone see the gap that continues to grow between the haves and haves not . This is appalling. I hope those that sleepwalk wake up before its too late. Blinded by mindless t.v. while real issues are unfolding and corporate America refuses to air them. My guess is this is only the tip of the iceberg. How much do we not know? When will we stand up, hopefully before there is an even bigger crisis in this country. Lawmakers want to debate helping students by keeping their interest rates on student loan debt manageable while corporate slobs get breaks, cuts and bailouts. Twisted!

    May 15, 2012 at 11:52 am | Report abuse |
  14. WeDon'tMatter

    Of course he deserves his $23 million, seems that every political puke or rich puke that works their butt off to destroy this country gets to reap undeserved benefits why not this guy? Screw the poor people!

    May 15, 2012 at 11:52 am | Report abuse |
  15. Big Picture Guy

    This particular CEO saved one of the largest banks in the world from a great deal of pain when it mattered. So get your pitchforks and torches out and run the best bank CEO in the country out of town. Then they will replace him with somebody who makes the same amount and didn't guide the bank successfully through the worst financial meltdown of our time. He built this bank to a position where it is earning 10x this loss amount in a year.

    I would like to see you folks at the helm of this bank. How well do you think you would do running such a highly complex, highly regulated business with a massive amount of risk?

    Look at the big picture.....

    May 15, 2012 at 11:52 am | Report abuse |
    • UHhello

      We need to re-instate the Glass -Steagal regulation flat out. Banks should not be allowed to do two things. 1. roll mortgages in to bundles of other stocks. 2. bet on dirivitives. These are the two main reasons America's banks went in the tank in 2008. The Frank-Dodd act doesnt address any of this issue with any real teeth. We need to stablize this countries economic back bone. We need to start with these larger banks if they cannot make money then we need to split them up. Should he make 23 m (including stock options), I would say NO CEO should make more than 70 times his or her highest paid non -exectutive.

      May 15, 2012 at 12:02 pm | Report abuse |
    • Charles F Williams

      Just another case of a Senior Wall Street Executive claiming an unjustifiable reward for FAILURE! Anything other than that would have had been a pleasant surprise to everyone.

      May 15, 2012 at 12:04 pm | Report abuse |
    • Sharon

      @ Big Picture Guy. You don't know what you are talking about. His success is part being smart, part being lucky and part being ruthless. He came from Bank One to JP Morgan Chase by virtue of his relentless ability to slash costs and jobs. That's what he knows. It's good for stock holders and bonus money for a select few and that is where his value is. When it comes to anything else, he has been sailing (until now) with a bit of luck and he knows it. The point is, he doesn't deserve the salary he makes and so many people who work so hard who save lives, help people, educate our kids, ect ect make nothing.

      May 15, 2012 at 12:09 pm | Report abuse |
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