Another Wall Street Executive Gets a Big Raise
Sometimes, it really pays to be a banker. For example, JPMorgan Chase & Co. (NYSE:JPM) Chairman and CEO Jamie Dimon was granted a 74 percent raise in 2013, receiving $20 million between stock grants and a base salary of about $2 million. The decision to give Dimon a raise came despite the bank posting its first-ever quarterly loss that year.
Still, JPMorgan stock increased about 30 percent in 2013, and Dimon played a critical role in steering the bank through the mess of legal trouble it found itself in after the wake of the financial crisis and the London Whale fiasco. The firm’s board of directors ultimately decided it was appropriate to reward Dimon for his work despite the bad signals it may send to the public.
Bank of America Corp. (NYSE:BAC) reached a similar conclusion about its chief executive, Brian Moynihan, although Moynihan arguably has fewer ties to the crisis than Dimon. According to a document filed with the Securities and Exchange Commission on Wednesday, Moynihan received $12.5 million in stock grants as compensation in 2013, which is in addition to his $1.5 million salary. This compares against compensation of $12.1 million in 2012.
Whatever your opinion of Bank of America, Moynihan has steered the company well over the past few years, and the raise isn’t totally out of line with the kind of lavish pay packages usually granted to top Wall Street executives. Case in point: Dimon’s enormous raise.