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. Dan

    You guys are missing the point of this. True, it is a private corporation and they are technically allowed to do as they please. However, they are not doing this with their own money – they are doing this with money people have on deposit, and money that the Fed allows them to create by leveraging themselves out 30:1. If you want to continue to pay additional fees, and add restrictions to your banking behavior then by all means, support his 23 million dollar bonus. They will pay for it by raising your fees and making it more difficult to access your money.

    May 15, 2012 at 4:20 pm | Report abuse |
    • Chris

      PUBLIC COMPANY – JPMORGAN IS A PUBLIC COMPANY. Not sure how else to explain this. Shareholders hold stock in the company – i.e. they are part owners. The company puts together a compensation package which is often voted upon. I'm sure you're aware of how elections work – if enough people vote YES, then the thing passes. If they vote NO, it doesn't.

      May 15, 2012 at 4:24 pm | Report abuse |
  2. Daniel

    When the revolution comes, it will be guys like this with his head on a stake overlooking the ocean front beach property he once owned. I hope I am around with it happens

    May 15, 2012 at 4:21 pm | Report abuse |
    • terry

      I'm not sure that I want to see the revolution, but the rest of your comment is about right. When they come with pitch forks and torches for these guys, they'll think, "Oh, it must be Halloween. Jensen, open the gates and give them some Godiva."

      May 15, 2012 at 5:02 pm | Report abuse |
  3. Cris

    I personally believe that he does not deserve the money. However, executives from the beginning of when companies were formed were being compensated in a manner with which most people would deem inappropriate -but we must keep in mind that executives often were also owners and as such put up all capital to start some of these businesses. Somehow over time the lines blurred between serving as an exec and really having skin in the game. In other words, if I start a company, it grows to a billion dollar company, then I pay myself whatever I damn well please. Conversely, in a publicly traded company, the stockholders and board of directors dictate pay and contracts of executives – so in his case he was presented with a compensation package which was alluring enough for him to take on the role of cheif executive. Often times companies will recruit executives away from other companies in an attempt to increase value of their company – it has gotten so out of hand that executives are now expecting double digit millions to step into what essentially is a revolving door of a position. Others have made the comment (and I agree), that there are shareholders behind the vote for this compensation – so who's the dummy here US or HIM?

    May 15, 2012 at 4:21 pm | Report abuse |
  4. Lito Hernanz

    At the very least, we need to separate (again) commercial banking from investment banking. In other words, restore the Glass-Spiegall Act pretty much in its original form. They should speculate with their own money. Anyone who believes that these guys can regulate themselves has to be delusional. They are a mafia in business suits.

    May 15, 2012 at 4:22 pm | Report abuse |
  5. Jim DeAugustinis

    H*ll NO! $2 billion loss and no one is held accountable fiancially?!!? Let the tax payer eat it!?! This guy is supposed to be "managing" an organization and keeping it profitable. These "risky" hedges are not wise and if you don't hold him accountable and take it out of his compensation package what deters him from risking taxpayers money, shareholders dividends, etc again?
    Get smart America-stop turning our country into the "olde" country we came from of Kings, Princes, Corrupt sheriffs and bring back democracy, values and morals.
    This country is tanking from the inside and that is the root cause of failure of any nation/company/religion/government.

    May 15, 2012 at 4:23 pm | Report abuse |
  6. Martys

    This is completely wrong. The whole system and culture that allows this to happen is failing. Nothing will change until the 99% make it change. I can't believe some people that say that because it's a private company it should be allowed to do what ever it wants. It is theft pure and simple. It must be stopped.

    May 15, 2012 at 4:24 pm | Report abuse |
    • zaxxonzz

      Were any laws broken? This is so stupid, "something needs to be done" like what? Have the gov't run every company? Have the gov't control all the compensation packages? Like they'd do a good job of that, with all there pension troubles (esp in california) they are even more egregiously over paying their workers.

      May 15, 2012 at 5:35 pm | Report abuse |
    • N fiengo

      you're the problem with america.

      May 15, 2012 at 6:38 pm | Report abuse |
  7. David Midwest Guy

    It is ridiculous for people to say "JP Morgan shareholders can choose to give him $23M if they wish - it is a private company." Such a statement shows incredible naiveté about how big corporations work. Company decisions are made by Boards of Directors who self propagate by nominating favored insiders through the Board over the years. Shareholders, as a general rule, hold no real power to change anything in the Board. To be completely honest, the shareholders are DESPISED by Boards of Directors. As evidence, I offer the simple observation that not a SINGLE shareholder proposal has ever in the history of American Corporations ever been supported by a Board of Directors.

    May 15, 2012 at 4:25 pm | Report abuse |
    • zaxxonzz

      Shareholders elect the board dude. Who's naive now?

      May 15, 2012 at 5:18 pm | Report abuse |
  8. Bruce Kramer

    Mr Dimon is one of the most talented bankers in our country. However, on his watch, a direct report's unit lost two billion dollars and counting. He can't go gultless. As far as the vote to approve his big paycheck, remember most of the votes are mail in proxies and would have been cast weeks before the annoucement. The vote may be different if the timing was different. This is another example of banks's being unable to manage themselves.

    May 15, 2012 at 4:26 pm | Report abuse |
  9. zaxxonzz

    You could pay him 100 billion a year for all I care. It's none of my business how much they pay their CEO. Its up to the shareholders and board of directors to determine that. If you don't agree he deserves that, sell your shares, and don't use that company. Kobe Bryant makes 25 million a year, does he deserve that any more or less then some CEO (well in this case yes, because he lost the company money). These guys make big money because the shareholders have high hopes they can make the company more profitable. SO IF YOU OWNED A COMPANY, WOULD YOU PAY SOME GUY 25 million if they could bring you 2billion in profit? Of course. So don't be stupid with this he should only make $10/hour nonsense.

    I know, this guy lost money, but your paying him on the hope he turns it around base on passed performance.. just like you would pay a #1 draft pick. With that said, personally I would fire this guy

    May 15, 2012 at 4:26 pm | Report abuse |
  10. Vadim

    How about we call Mr. Dimon the "HoodRobin" since that is what he is doing. Reverse RobinHood, stealing from the poor and giving to the rich..

    May 15, 2012 at 4:27 pm | Report abuse |
    • Kuykendall

      "Hood Robber"... he's stealing from my hood playa! lol

      May 15, 2012 at 5:09 pm | Report abuse |
  11. barbra kramar

    This person,sitting in the picture, arms outstretched, smile on his face just gives me the impression he is saying under his breath: suckers, stupid, and yet still give me my 23 million dollar bonus. I earned it. The billion dollars that are lost might be in the bank somewhere......etc. Thank you nice people, nice board of directors. What really makes me sick they reward him when most people in his position would be on their way to prison.

    May 15, 2012 at 4:27 pm | Report abuse |
  12. Nick

    JPM Chase lost $2 Billion, but they also made $5.7 Billion in the first quarter this year. Sometimes taking risks pays off, sometimes not. This time not. But they're still in fine shape.

    May 15, 2012 at 4:28 pm | Report abuse |
  13. John Thomas

    Big bank, little bank, every bank has a thief maneuvering their way into vault of OUR MONEY in their bank.

    Liars, cheats and thieves have always been in banking, it's just the size of the casche that makes the news.

    Perhaps every state Government should create their own banking system within their own state.
    Every transaction that requires lending/borrowing, hedging and so on, would at least be localized.

    That said, I will say again," Liars, cheats and thieves have always been in banking."

    So, no matter how we re-structure state, national and international banking, there will always be LiArS, cHeAtS and tHiEvEs at work within attempting to take what is not theirs and deposit it into their own treasury.

    There must be greater scrutiny within banking and much greater penalty for those who are proven to be a thief! Thieves hang with other theives, often working together for a bigger haul.*Ka BOOM *

    Not a five star room, not even a private cell...where a custom picked mate can flourish ( and maybe even get legally married according to OUR President ).

    J

    May 15, 2012 at 4:28 pm | Report abuse |
  14. M herrera

    of course not. he failed at his job. he is the ceo and he should have eyes and ears open at all times. he can't blame the little people for their mistakes. ultimately he is responsible.

    May 15, 2012 at 4:39 pm | Report abuse |
  15. hannamomma

    blankety blank blank NOO

    May 15, 2012 at 4:40 pm | Report abuse |
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