Jamie Dimon’s Pay Raise Sends Mixed Signals on Culture and Accountability

The Harvard Law School Forum on Corporate Governance and Financial Regulation 2014-02-03

Summary:

Editor's Note: Ben W. Heineman, Jr. is a former GE senior vice president for law and public affairs and a senior fellow at Harvard University’s schools of law and government. This post is based on an article that appeared in the Harvard Business Review online.

The JP Morgan Chase board of directors has vexed the world with its terse announcement in a recent 8-K filing that CEO Jamie Dimon would receive a big pay raise—$20 million in total pay for 2013, up from $11.5 million for 2012, a 74 percent increase.

Not surprisingly, the news sparked strong reactions, from indignant critique to justification and support. Dimon’s raise obviously has special resonance because JP Morgan’s legal woes were one of the top business stories last year as it agreed to $20 billion in payments to settle a variety of cases involving the bank’s conduct since 2005 when Dimon became JPM CEO. But the ultimate question that gets fuzzed-over in the filing and response is one of culture and accountability—whether a long-serving CEO is accountable for a corporate culture that has spawned major regulatory inquiries and settlements across a broad range of legal issues, even though the firm has otherwise performed well commercially.

Click here to read the complete post...

Link:

http://blogs.law.harvard.edu/corpgov/2014/02/03/jamie-dimons-pay-raise-sends-mixed-signals-on-culture-and-accountability/

From feeds:

Blogs.law Aggregation Hub » The Harvard Law School Forum on Corporate Governance and Financial Regulation

Tags:

banking & financial institutions boards of directors executive compensation op-eds & opinions accountability ben heineman compensation disclosure compliance & ethics executive performance firm performance jpmorgan risk management

Authors:

Benjamin W. Heineman, Jr., Harvard Law School Program on Corporate Governance and Harvard Kennedy School of Government,

Date tagged:

02/03/2014, 16:50

Date published:

02/03/2014, 16:46